BNP Paribas Fortis Bank to pay the price for risky investments

BNP Paribas Fortis bank has been ordered by a court in Northern Belgium to repay €375,000 to a client of the bank after he lost the money making risky investments on their advice. 

The Belgian business owner sold his business in 2004 and turned to the bank for a consultation on how best to invest the money gained by the sale. Despite stressing his desire for a safe haven for the capital, the court heard, the Fortis client later discovered he had suffered heavy losses from risky investments advised by his bankers.

“A great deal of money vanished like snow under the sun,” said the client’s lawyer, Geert Lenssens. The bank refused a settlement, and the issue came before the court.

The court ruled that Fortis had behaved illegally and ordered the repayment of the full amount involved. At a later sitting in January, the court will specify the exact sums of capital, interest and expenses to be paid. “Fortis gave its client insufficient information,” the court said, while stressing that the case does not set a precedent.

The ruling, said Lenssens, is encouraging for all investors dealing with banks and financial advisers. “The law cannot be strong enough when it comes to protecting savers and investors without experience.”