Belgium's KBC Bank has reached a settlement with about 40 private banking clients and companies over claims that they were mis-sold collateralised debt obligations.

The settlement case against the bank was opened by investor rights group Deminor in February of this year after the debt securities in question lost value due to the credit crisis.

KBC is the parent of Brown Shipley, the UK private bank.

In initially answering the claims of mis-selling KBC said it have given the clients concerned as much information as possible on CDOs, through prospectuses, information sheets, and regular discussions about their portfolios. Clients were sold primarily investment grade CDOs (with ratings above Baa3), the firm said.

A settlement agreement was agreed in principle in August before being unanimously accepted by the clients concerned at the start of this month. The compensation offered by KBC varies on the “specific facts of each case” and both parties will refrain from further comment on the settlements involved, Deminor said in a statement.

KBC said the deal "definitively" closed the settlement case and that Deminor will not represent any other clients in cases related to the CDO investments sold by the bank.