Genil 48 SL, v Bankinter SA, [2013] EUECJ C-604/11 (30 May 2013)

Genil 48 SL, v Bankinter SA, [2013] EUECJ C-604/11 (30 May 2013)

Article 4(1)(4) of Directive 2004/39/EC covers the offering of a swap agreement as investment advice only if the recommendation is personal, suitable, and not public. Article 19(9) exempts assessment obligations only if the investment service is an integral part of a financial product subject to equivalent risk assessment or information requirements. The Directive does not itself render contracts void for non-compliance; contractual consequences are for national law, subject to EU principles.

Citation
[2013] EUECJ C-604/11
Parties
Applicant: Genil 48 SL; Applicant: Comercial Hostelera de Grandes Vinos SL (CHGV); Respondent: Bankinter SA; Respondent: Banco Bilbao Vizcaya Argentaria SA
Jurisdiction
European Union
Judgment Date
30 May 2013
Procedural Posture
Preliminary Ruling (cjeu) / Judgment
Outcome
Questions answered; interpretation provided; no annulment or direct order issued.
Legal Topics
Directive 2004/39/ec (mi Fid), Investment Advice, Suitability and Appropriateness Tests, Swap Agreements, Investor Protection, Contractual Consequences of Non Compliance
European Union Law Financial Regulation Directive 2004/39/ec (mi Fid) Investment Advice Suitability and Appropriateness Tests Swap Agreements Investor Protection Contractual Consequences of Non Compliance

Case Brief

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Parties

Genil 48 SL

Applicant

Comercial Hostelera de Grandes Vinos SL (CHGV)

Applicant

Bankinter SA

Respondent

Banco Bilbao Vizcaya Argentaria SA

Respondent

Procedural Posture

Preliminary Ruling (cjeu) / Judgment

Legal Issues

  1. 1 Whether offering a swap agreement to cover interest rate risk constitutes 'investment advice' under Article 4(1)(4) of Directive 2004/39/EC
  2. 2 Whether omission of suitability/appropriateness tests under Article 19(4) and (5) of Directive 2004/39/EC renders contracts void ab initio
  3. 3 Scope of Article 19(9) of Directive 2004/39/EC regarding exemptions from assessment obligations

Ratio Decidendi

Article 4(1)(4) of Directive 2004/39/EC covers the offering of a swap agreement as investment advice only if the recommendation is personal, suitable, and not public. Article 19(9) exempts assessment obligations only if the investment service is an integral part of a financial product subject to equivalent risk assessment or information requirements. The Directive does not itself render contracts void for non-compliance; contractual consequences are for national law, subject to EU principles.

Court Disposition

Questions answered; interpretation provided; no annulment or direct order issued.