Julius Baer has revealed that one of its former clients has sued it to claim up to SFr121 million (around $125 million) for alleged losses from forex trading. It has also revealed another claim connected to funds for which Bank of China (Suisse) – later acquired by Julius Baer - had previously acted.

The disclosures of the claims are contained in the Zurich-listed bank’s annual report, issued yesterday. It is relatively unusual for a bank to disclose such client claims unless such a claim is materially significant. WealthBriefing, our sister publication, asked the bank if it had further comments on the matter but it declined to expand beyond the details of the report.

“In October 2015, Bank Julius Baer & Co Ltd was served with a claim by a former client in Zurich in the amount of SFr1 million plus accrued interests since 2008. The claimant claims losses in the context with foreign exchange transactions and argues that the bank has breached its duties with respect to diligence, disclosure and information duties. The claimant filed a partial claim, i.e. reserved the right to increase the claimed amount to approximately SFr121 million arguing that the total loss incurred with foreign exchange transactions amounts to SFr441 million in total,” it said.

The bank is contesting the claim whilst taking appropriate measures to defend its interests. The annual report also referred to a SFr39 million lawsuit involving an investment fund which was acting for three other funds that were former clients of Bank of China (Suisse) – later acquired by Julius Baer.

The bank went on: “The claimant [plaintiff] argues that Bank of China (Suisse) SA acted not only as a custodian bank, but also as secured creditor and manager of the funds, and tolerated excess in leverage. It claims that the funds suffered a severe loss consequently to the liquidation of almost the entire portfolio of their assets in May 2010, arguing that this liquidation was performed by Bank of China (Suisse) SA without the consent of the funds’ directors and was ill-timed, disorderly and occurred in exceptionally unusual market conditions. The bank is contesting the claim whilst taking appropriate measures to defend its interests. In addition, such claims are subject to acquisition-related representations and warranties.”