Hong Kong: Court finds bank not liable for fraudulent investment introduced by employee

If an employee commits a fraud against their employer’s customer, does the employer have any vicarious liability for the consequences, or could they be held liable for negligence by not detecting the fraud in time? A recent case involving a bank heard by a Court of First Instance has ruled that even where there is a “close connection” between the tort and their employment that a further test of “apparent authority” should be made …

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