The Zurich-based investment house is part of a years-long dispute that has now drawn the Finma into the mix.
Vontobel is in the middle of sharply contested, long-running court proceedings between two Asian companies that may have prompted enforcement proceedings by Swiss regulator Finma, Swiss daily newspaper Neue Zuercher Zeitung indicated Tuesday (in German, behind a paywall).
According to the newspaper, the situation is a difficult one for the Swiss-based institution, not least given that it has managed to avoid many of the scandals that have involved other players in the domestic financial sector in recent years.
But the dispute also raises long-running accusations that lawyers and private accusers can only too easily access sensitive bank information, the NZZ said.
Originating in Thailand
According to the newspaper, the dispute started around 2015 in Thailand, after Japanese finance company J Trust purchased more than 200 million US dollars in bonds as well as an equity stake in Thai credit provider Group Lease, which provides loans for scooters, given it was seen as a strongly expanding business.
The relationship soured in 2017 when Group Lease shares fell sharply after the Thai regulator charged the head of the business with inflating operating performance through fraudulent credit. The legal proceedings are ongoing.
As a result, J Trust started numerous proceedings in various countries, saying it had been deceived before it made the investment. Some of the proceedings are ongoing while it has lost others in a number of jurisdictions. In Singapore, it won a settlement for 70 million dollars in 2020, even though they had demanded 230 million.
Involving Vontobel
The NZZ said both sides are becoming increasingly aggressive. J Trust charged the Group Lease CEO in Zurich, given he was ostensibly a Vontobel client. The Zurich district attorney subsequently started a criminal investigation, which is still ongoing.
J Trust then involved Vontobel directly, saying that it had raised the charges as a private individual, allowing it to view sensitive bank documents.
That step also prompted the Finma to start proceedings, according to sources close to the bank. Finma itself has not disclosed anything on the matter.
Hardening Stance
The sources indicate that Vontobel's stance against J Trust appears to be hardening given their view that the legal steps they are based on do not have any solid justification, and given J Trust is demanding the 230 million dollars in damages.
In April, J Trust filed a payment notice for 214 million francs plus 5 percent interest - stemming from 2015 on. Vontobel countercharged J Trust, asking that the notice be rescinded.
The proceedings continue in the Zurich courts.
