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Couple sue HSBC over ‘misleading’ investments in SNS Bank

HSBC Bank Malta is being sued for supplying a couple with misleading information, resulting in a 'massive loss' of capital and interest 

matthew_agius
Matthew Agius
14 November 2017, 10:49am
A couple from Sliema have taken HSBC Bank Malta plc to court, claiming compensation for having suffered “massive losses” because the bank had failed to supply them with “fair, clear and not misleading” information about the investment scheme it sold them.

This was claimed in a judicial letter filed by Joseph and Adelina Vella, claiming that bank representatives had given them incomplete and incorrect information in 2012 and 2013, when the couple purchased bonds in ‘SNS’, a Dutch Bank.

The couple were not informed of the fact that the investment was as risky as it turned out to be, as it was not listed amongst the bank's ‘Higher Risk Bonds’, the judicial letter claims.

The Vellas are accusing HSBC of failing to carry out proper due diligence on SNS Bank, which received a government bail-out in Holland some years ago and had been downgraded by Moody's no less than six times.

After the bail-out, the subordinated bonds were seized by the Dutch government, and no compensation was offered to investors.

The Maltese couple say they suffered a "massive" loss of capital and interest as a result.

The letter, signed by lawyer Stefano Filletti, called upon HSBC to liquidate and pay the couple damages for the loss they incurred, also reserving the right to take further legal action.

matthew_agius
Court reporter Matthew Agius is a Legal Procurator and Commissioner for Oaths. Prior to re...