Overview

Structured products have emerged as a product of much legal dispute in recent times. They can be a highly profitable investment option, but they carry great risk and – as seen in reecent ecconomic history – can lead to great losses. Therefore the stakes are high and the value of judicial pronoucments on structured products continues to rise.

In Titan Steel Wheels v The Royal Bank of Scotland, the English High Court had to consider a very pertinent question: Does a bank selling structured products owe any duty of care to its customer in respect of advice given? In this case, the court found that no such duty was owed.

This case was applied in the recent local decision of Go Dante Yap v Bank Austria Creditanstalt. The approach taken in this case is thus in line with the Singapore position, reflecting the responsibiliy of purchasers of structured products for their own losses.