One of his aggrieved clients had an online account with UBS

Now nearly four months, the Commission de surveillance du secteur financier (CSSF) is the seat of the UBS fortress, without great results. His decision to subject this last requiring him to repair, February 25, as the depositary of the Luxembourg Luxalpha sicav, linked to Madoff, did not break its silence Swiss Bank.

Yet, on paper, the Luxembourg regulator appeared to have arguments to flinch. Emmanuel Asmar, associate founder of the law firm of Asmar & Assayag, approached him with a strong case for a conciliation procedure. One of his aggrieved clients had an online account with UBS. Then, when the latter said to defend himself, in response to the release of the CSSF on 25 February, that "these customers were represented by sophisticated financial institutions who were aware of the nature of these investments", counsel smiles. In these conditions, UBS should therefore be aware of the risks, since it did not lack promote Luxalpha. He presented the sicav "as a product guaranteed performance "absolute return" and"capital preservation"vocation", says Emmanuel Asmar ("Les Echos" on January 26, 2009). UBS has even awarded with this return of bank loans on advantageous terms, what are referred to in financial jargon by the "value lending." What encourage clients to reinvest these amounts in Luxalpha, whose annual performance ranged on average between 6.5 and 7.5.

More troubling still, two withdrawals carried out on the customer's account, which one of several million euros in mid-October, 2008, without his notice, and without that there is management mandate on its behalf, for a total of EUR 14.86 million.

Fine ceiling

With such elements, all then argues for a speedy settlement. After have exposed them on 11 February, the lawyer receives the response of the CSSF March 13: "the date today, UBS has not submitted the folder under heading a proposal for an out-of-court settlement. We therefore consider that our means pursuant to article 97 (3) of the 2002 Act and article 58 of the Act of 1993, are exhausted. Therefore, the CSSF intends to stop its intervention pursuant to the aforementioned sections. "Clear, regulator dropped arms. "Finally, we can add that you have the possibility to seize the Court of the case under heading", completes the CSSF.

"It seems we cannot move forward in this case that the courts," summarizes Emmanuel Asmar. We will assign UBS as administrator, Manager, custodian and promoter, but also the social agents of Luxalpha, auditor, Ernst & Young, through Access and the CSSF.

In the authority, the time is change. Its President, Jean-Nicolas Schaus, turn the hand, next month, to Jean Guil, a relative of Luc Frieden, Minister of the Budget and the treasure of the Grand Duchy. Officially, for the retirement. This change to be beneficial to investors cheated in the Luxembourg SICAVs Madoff-related folder, should that regulator way strengthened powers. In an interview at the Paperjam.lu site, March 20, Jean-Nicolas Schaus confessed that he could not impose on UBS fined capped at 12.500 euro at the end of the three months granted so that it puts in accordance, therefore at the end may. Withdrawal of accreditation is to Luc Frieden, seeking an amicable settlement of the case in a yet another appeal.