European investors' protection group Deminor is to launch a legal action against the investment banks HSBC and UBS on behalf of clients hit by the $50 billion Madoff scandal, according to reports.
The company's case is expected to argue that the banks have "neglected" victims of the alleged fraud, City AM reports.
UBS, which is Switzerland's biggest bank and a global player in asset management and investments, said it did not recommend investing in Mr Madoff's products, the site noted.
However, it did establish a fund in Luxembourg, Luxalpha, that did invest with the Wall Street broker, the bank said.
In December, London-based HSBC confirmed it had a number of custody clients who had money invested with Mr Madoff.
The bank, which has offices in 85 countries, also said it had provided financing to a "small number of institutional clients" who were exposed to the scandal.
In total, HSBC estimated its potential losses from the affair at $1 billion.
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