Zaki & Ors v Credit Suisse (UK) Ltd

Zaki & Ors v Credit Suisse (UK) Ltd

The appeal is dismissed because the judge was entitled to find that the leveraged investments were suitable for Mr Zeid, taking into account his experience, understanding, and ability to bear the risks. Any procedural failings in process did not render the bank liable where substantive suitability was found. COB 7.9.3 applies to individual transactions, but its suitability test is narrower and was subsumed by the judge’s holistic approach under COB 5.3.5. There was no breach of statutory duty causing recoverable loss.

Parties
Appellants: Soheir Ahmed Zaki, Shahira Zeid, Bahira Zeid; Respondent: Credit Suisse (UK) Ltd
Jurisdiction
England and Wales
Judgment Date
01 February 2013
Procedural Posture
Civil Appeal / Appeal From Queen’s Bench Division Commercial Court
Outcome
Appeal dismissed
Legal Topics
Breach of Statutory Duty, Suitability of Investment Advice, Lending to Private Customers, Conduct of Business Rules (cob), Leverage in Investment Products
Financial Services Regulation Banking Law Breach of Statutory Duty Suitability of Investment Advice Lending to Private Customers Conduct of Business Rules (cob) Leverage in Investment Products

Case Brief

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Parties

Soheir Ahmed Zaki, Shahira Zeid, Bahira Zeid

Appellants

Credit Suisse (UK) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Queen’s Bench Division Commercial Court

Legal Issues

  1. 1 Whether Credit Suisse (UK) Ltd breached statutory duties under COB 7.9.3 and COB 5.3.5 in relation to lending and suitability of leveraged investments to Mr Zeid
  2. 2 Whether procedural breaches in assessing financial standing or suitability render the bank liable for losses
  3. 3 Whether the judge erred in his approach to suitability and causation

Ratio Decidendi

The appeal is dismissed because the judge was entitled to find that the leveraged investments were suitable for Mr Zeid, taking into account his experience, understanding, and ability to bear the risks. Any procedural failings in process did not render the bank liable where substantive suitability was found. COB 7.9.3 applies to individual transactions, but its suitability test is narrower and was subsumed by the judge’s holistic approach under COB 5.3.5. There was no breach of statutory duty causing recoverable loss.

Court Disposition

Appeal dismissed

Orders

  • No liability found against Credit Suisse (UK) Ltd
  • No damages awarded to appellants