Customers argue that the GES banks acted illegally … – Business Journal – Portugal

Customers argue that the GES banks acted illegally … – Business Journal – Portugal

The association created in defense of BES clients and Banque Privée considers that there has been “customer acquisition practices by the banks of the GES” for the sale of the group’s debt. And want a refund of the products.

Imagine a scenario: The account manager of Banco Espírito Santo have advised the client to place their investments in products of the Holy Spirit in the Group Banque Privée Espírito Santo, in Switzerland or branch in Portugal. Have said that the investment was safe and conservative. The client will open this account. It was actually a debt. Client managers both BES as the BPES been in contact for this process.

This is a procedure that the Defense Association of Bank Customers (ABESD) said to have been followed by financial institutions of the Holy Spirit Group to “raise” customers for debt securities of their societies.

The charge is contained in a statement sent to newsrooms by the association, which is based on a legal seems to lawyers requested Macedo Vitorino & amp society; Associates, which points to “strong indications of irregularities and illegalities in the behavior of banks Espírito Santo Group” in the trade relationship with the members of this association (currently include about 100 customers), who hold debt securities of the Holy Spirit Group.

Among the factors that justify the consideration of “illegal” and “irregular” are a violation of the risk profile (selling risky products to conservative investors) or the lack of information on the characteristics of the instruments sold.

identical to refund commercial paper

The association’s president, Luis Vieira said in a statement it would use this for legal opinion, with him come back to ask the Bank of Portugal a solution that allows them to recover investment: “We will ask to include in the solution refund to customers of commercial paper, because the action of the Holy Spirit banks was actually similar to the marketing of their financial products . “

The Bank of Portugal authorized the New Bank (which inherited the assets considered good BES) to repay the money invested in the Rioforte commercial paper and other societies of the Holy Spirit Group sold to customers in branches of bank then headed by Ricardo Salgado (pictured). The solution provided by the administration of Vítor Bento passed by the transformation that investment in deposits. The new administration, under the command of Stock Eduardo da Cunha, is still evaluating the process, so there is no decision. There is only one provision of € 856 million to cover the cost of commercial paper sold to BES branches.

The ABESD was established in June 2014 for the defense of clients of financial units of the Holy Spirit Group who invested in deposits and debt securities of companies as Rioforte or the Holy Spirit International. There are customers of the old BES or Banque Privée that are acting through collective understandings, as the case of the association, while others chose to follow with individual processes. Anyway, there are several fronts on BES / GES any case, we are moving in law firms, as this progresses Wednesday Business.