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Swiss Wealth Manager To Compensate Some Madoff Stricken Clients
Rachel Walsh
24 April 2009
Swiss wealth manager Notz Stucki is to partially reimburse clients who lost some $750 million in Bernard Madoff's $65 billion fraud. The Geneva-based firm takes its cue from
Union Bancaire Privee and Banco Santander’s Optimal both of which have made similar efforts to remedy damage to their corporate image related to the fraud. In a statement, Notz Stucki pledged it would only compensate clients with a discretionary management mandate with up to SFr120 million ($103.2 million). This means clients who asked specifically for access to Madoff will not be compensated. In March, UBP offered to acquire 50 per cent of funds invested with Bernard Madoff, who has pleaded guilty this week to running a massive fraud. Payment to clients will be made in five annual instalments with 2 per cent per year interest, over the course of five years. In making this offer, UBP said it “shows its long term commitment to stand side-by-side with its clients.” The offer showed similarities to a January statement from Banco Santander saying it would extend compensation through preferred shares paying interest of 2 per cent a year to its Optimal hedge fund investors. The Notz Stucki Group offers portfolio management services to private and institutional clients through 90 representatives at offices in