Wee Soon Kim Anthony v UBS AG: Misrepresentation in Foreign Exchange Transactions and Banker's Duty of Care

In Wee Soon Kim Anthony v UBS AG, the High Court of Singapore addressed claims brought by Wee Soon Kim Anthony against UBS AG concerning alleged misrepresentations and breaches of duty related to foreign exchange transactions. The plaintiff, a customer of the bank, claimed that UBS AG's officers misrepresented the interest rates on his leveraged deposit and the terms of a Dynamic Floor Fund (DFF) strategy. The court, presided over by Justice Kan Ting Chiu, dismissed the plaintiff's claim, finding that while there was a misrepresentation regarding interest rates, the plaintiff did not suffer any loss as a result. The court also found no misrepresentation regarding the terms of closing the forward MYR position.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiff's claim dismissed with costs.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

High Court case involving Wee Soon Kim Anthony and UBS AG concerning alleged misrepresentations in foreign exchange transactions and the bank's duty of care. The court dismissed the plaintiff's claim.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
UBS AGDefendantCorporationJudgment for DefendantWon
Wee Soon Kim AnthonyPlaintiffIndividualClaim DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Kabir SinghDrew and Napier LLC
Davinder Singh SCDrew and Napier LLC
Hri KumarDrew and Napier LLC
Lim Chor PeeChor Pee and Partners
M RaniChor Pee and Partners

4. Facts

  1. Plaintiff was a private banking customer of the defendant.
  2. Plaintiff entered into forward contracts to buy MYR.
  3. Plaintiff adopted the DFF Strategy.
  4. Defendant's officers allegedly misrepresented interest rates on the plaintiff's MYR deposit.
  5. Defendant's officers allegedly misrepresented the terms of unwinding the 12-month MYR contract.
  6. Plaintiff closed out his forward MYR position and incurred a loss.
  7. The Malaysian government imposed foreign exchange measures.

5. Formal Citations

  1. Wee Soon Kim Anthony v UBS AG, Suit 834/2001/R, [2003] SGHC 305

6. Timeline

DateEvent
Plaintiff became a private banking customer of the defendant.
Plaintiff instructed the defendant to enter into a one-month forward contract to buy MYR35,000,000.
Defendant sent fax regarding risks involved in forex transaction.
Plaintiff entered into another one-month forward contract to buy MYR5,000,000.
Plaintiff took delivery of the MYR40,000,000 using US$ borrowed from the defendant.
Plaintiff adopted the DFF Strategy.
Plaintiff instructed the defendant to sell MYR and buy US$3,000,000; transaction reversed at a cost of US$63,500 to him.
Plaintiff sold his investment in the SBC Fund and received proceeds of US$11,361,215.57.
Defendant unwound the 12-month forward contract and incurred a loss of MYR2,442,561.03.
Malaysian government imposed foreign exchange measures.
Defendant converted the plaintiff’s deposit on the exchange rate of MYR4.00 to US$1.
Statement of claim filed.
Judgment issued.

7. Legal Issues

  1. Misrepresentation
    • Outcome: The court found that there was a misrepresentation regarding interest rates, but the plaintiff did not suffer any loss as a result. The court also found no misrepresentation regarding the terms of closing the forward MYR position.
    • Category: Substantive
    • Sub-Issues:
      • False statement of fact
      • Inducement
      • Reliance
      • Damages
  2. Breach of Duty of Care
    • Outcome: The court did not find a breach of duty of care.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages
  2. Account of Debits

9. Cause of Actions

  • Misrepresentation
  • Breach of Contract
  • Negligence

10. Practice Areas

  • Commercial Litigation
  • Banking Litigation
  • Financial Services Litigation

11. Industries

  • Finance

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Wee Soon Kim Anthony v UBS AG (No 2)High CourtYes[2003] 2 SLR 554SingaporeCited regarding the plaintiff's unsuccessful application for leave to amend his statement of claim.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Forward Contract
  • Swap Points
  • Leveraged Deposit
  • DFF Strategy
  • SBC Dynamic Floor Fund
  • MYR
  • US$
  • Negative Interest Rate Differential

15.2 Keywords

  • Foreign Exchange
  • Misrepresentation
  • Banking
  • UBS
  • Forward Contract
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Misrepresentation90
Banking Law80
Civil Practice70
Torts60
Contract Law50
Customer-Banker Relationship40

16. Subjects

  • Banking
  • Foreign Exchange
  • Financial Services
  • Misrepresentation
  • Contract Law