The Singapore division of Clariden Leu, the private bank soon to be integrated in Switzerland’s Credit Suisse, is allegedly being sued after allowing the 19-year old son of a client to make risky trades.

The Singapore division of Clariden Leu, the
private bank soon to be integrated in Switzerland’s Credit Suisse, is being
sued after allowing the 19-year old son of a client to make risky trades on his father's account, according to a report by Bloomberg.

Ian Ow and his father Ow Weng Fye want compensation of S$896,871 ($715,607) from Clariden Leu and their former banker Aaron
Chwee, after Ow was allowed to trade futures contracts, which resulted in losses.

The lawsuit
has been filed at the Singapore High Court, and a closed hearing is scheduled
for next month, the report said.

“The trades were carried out through the
instigation of Chwee without any consultation with WF Ow,” the Ows said in
their lawsuit cited by Bloomberg.
“Clariden did not take reasonable care as any prudent bank would have.”

Clariden Leu declined to comment. In an emailed statement the bank said: "It would not be appropriate for Clariden Leu to comment on an ongoing legal proceeding."

Ian Ow, who was considered a minor under
Singapore law when he traded in Singapore MSCI futures contracts in 2007, was
convinced by Chwee that Clariden had the systems in place to make trades which
would be profitable and risk free, according to court papers. The age of
majority in Singapore for purposes including voting is 21. It was lowered to 18
for entering most contracts in 2009.

Both father and son were “sophisticated and
knowledgeable investors,” Clariden Leu said in its defense. Ian Ow’s trades are
also binding as he was no longer considered a minor under Swiss laws at the
time of the trades in question, the bank said as reported by the newswire.

Ian Ow was financially astute and had been
trading in foreign currencies through a leveraged margin account when he and
his father opened an account with Clariden in 2006, Chwee said.
His father had instructed Chwee to take orders from his son, said Chwee, insisting that he had briefed the son on the risks.

Parent company Credit Suisse is absorbing Clariden
Leu this year, resulting in 550 job cuts, Switzerland’s second-biggest bank said in
November.