Singapore: bank’s duty of care in advising a customer on the management of his wealth
The Singapore Court of Appeal has held that a bank will not come under a tortious duty to exercise care in advising a customer on the management of his wealth where it did not undertake, contractually or otherwise, to provide any such advisory services or did not assume any responsibility to provide strategic advice on the customer’s investment portfolio as a whole or on the management of his wealth.
In this case, the Singapore Court of Appeal was not concerned with any allegation that a bank had engaged in the mis-selling of a financial product. Rather, the issue raised was, where a customer knows or understands the risks inherent in investing in a financial product, does a bank owe a duty to care to the customer to give sound or appropriate strategic investment advice as to the management and structuring of his portfolio as a whole, if it has not undertaken a contractual duty to do so? At first instance, the Singapore High Court held that the bank did owe such a duty of care to the customer based on certain ‘unusual facts’ of the case. However, the Singapore Court of Appeal reversed the High Court’s decision, finding that the facts relied upon by the High Court as giving rise to the bank’s duty of care to the customer were not ‘unusual’ in the circumstances of the case…
If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Taylor Wessing
News from The Lawyer
Briefings from Taylor Wessing
For the tax year from 6 April 2014, the standard lifetime allowance has reduced from £1.5m to £1.25m.
One of the areas highlighted last year by the Regulator was the regulation of workplace DC pension schemes.
Analysis from The Lawyer
As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014.
The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world