BRUSSELS (Reuters) - A Luxembourg court ordered Swiss bank UBS to disclose certain documents relating to its Luxembourg subsidiary’s handling of investments in Madoff products, according to a lawyer.
The lawyer, representing a party that may seek damages from UBS, said on Thursday that UBS would have to disclose two “important documents” within eight days or face a fine of 250 euros ($313.40) per day up to a maximum of 250,000 euros.
A spokeswoman for UBS said that the group had taken note of the decision but it had yet to receive the details in writing.
“Once we have received the written decision (which we expect within the next few days) we will analyze it,” the spokeswoman said.
Last week, Luxembourg’s financial market watchdog CSSF gave UBS three months to make changes to its Luxembourg custodian bank in the wake of the arrest of accused Wall Street swindler Bernard Madoff.
CSSF called on the Swiss bank to put in place the necessary infrastructure, human resources and internal rules to fulfill its responsibilities as a depository bank.
UBS rejected the calls to reform its Luxalpha fund and said it would “defend itself vigorously” as it did not believe the CSSF was correct.
UBS, which has said it did not recommend investments in Madoff products, said the Luxalpha fund was created after wealthy clients had requested a fund that would allow them to invest with Madoff.
It argued that the fund documentation made it clear that UBS Luxembourg SA was not expected to be responsible for the safekeeping of those assets.
In January, investor group Deminor said it would file a complaint against UBS and other institutions for allegedly neglecting clients who invested in Madoff-related products.
Madoff, a once-respected Wall Street trader and investment adviser, was arrested and charged with securities fraud on December 11 after authorities said he confessed to running a global Ponzi scheme with losses of $50 billion.
Reporting by Philip Blenkinsop and Antonia van de Velde; editing by Elaine Hardcastle