Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Advisory duty and suitability
  • 8 Aug 2016

    CHANG PUI YIN AND OTHERS v. BANK OF SINGAPORE LTD

    Citation
    CHANG PUI YIN AND OTHERS v. BANK OF SINGAPORE LTD
    Court
    Court of First Instance
    Case number
    HCCL12/2013

    The Services Agreement, read in its factual matrix and marketing materials, was properly construed to require the Bank to provide an advisory service for non‑discretionary accounts established on an advisory basis; consequently the Bank owed a contractual duty to exercise reasonable care and skill to ascertain clients' objectives and risk appetite, to recommend only products suitable to those objectives and to warn of material risks. The Bank breached that duty by selling and recommending high‑risk leveraged and currency products without adequate risk explanation and without regard to the pla…