Supreme Court, 26 March 2015, N°3420

In recent years, the Court of Appeal had to decide some times whether the non-compliance with certain rules of conduct resulting e.g. from the Financial Sector Law, the AML Law or certain rules of conduct by banks or other players in the financial sector could be considered as a basis for an action for damages by a client of such entity if it has suffered a loss because of the violation of such rules.

With few exceptions, the Court of Appeal considered, as a general principle, that rules of conduct in the financial sector were only designed for general interest. Thus, these provisions did not constitute a legal basis which could be raised by individuals in action for damages.

However, recently, the position of case law has evolved.

Firstly, the Court of Appeal admitted that a client might base a claim for damages on the violation of conduct rules if such rules have been provided for in the clients’ interest.

Moreover, very recently, the Supreme Court stated that the fact that a provision was specifically provided for to protect the general interest does not exclude that it could also protect private interests and give rise to compensation for individuals affected by the breach of such rule.