Leonteq Facing More Legal Woes
Swiss derivatives firm Leonteq is in the spotlight again. The Zurich-based firm faces a legal challenge from a major client.
Old Mutual has commenced legal proceedings against Leonteq claiming it suffered significant financial losses as a result of investment in Leonteq products. The derivatives firm rejected the claims saying it will rigorously defend its position, in a statement on its website on Friday.
Industry publication «International Adviser» (Subscription required), first reported the legal action against the Swiss firm. Old Mutual is taking the action against Leonteq for false statements in connection with the levels of commission paid to advisers on Leonteq structured products.
Had the true level of commission been disclosed, the products would not have passed Old Mutual International’s criteria, and no investments would have been made, Old Mutual said in the report.
