To print this article, all you need is to be registered or login on Mondaq.com.
The Paris Court of Appeal has jugded (C.A. Paris March 18, 1994, Locatelli vs. Goy-Hauvette) that a financial intermediary has an obligation to warn its clients of the risks associated with excess speculative investments on the Paris "Matif".
As a consequence, the court considered that the intermediary could be held liable when it:
- did not give its client precise information on the envisioned operations and on the related risks ;
- did not warn its client of the risks incurred by its client as a result of investments which were becoming more and more risky on a high risk market ;
- while, pursuant to the contract concluded with the client, the intermediary had an obligation to call margins on a daily baisis if necessary, it had called the said margins two months after the first debit balance created by the client's investments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be brought about your specific circumstances. For additional information contact Claire Acard on +33 (1) 55 61 10 10 or enter text search: "ARCHIBALD ANDERSEN Profile". The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar.
POPULAR ARTICLES ON: Accounting and Audit from France