UBS AG, HSBC Holdings PLC and other custodian banks for Luxembourg-based mutual funds have "clear" obligations to compensate investors for losses tied to Bernard Madoff, Treasury Minister Luc Frieden said.

"The principle is very clear: The custodian bank has to indemnify investors," Frieden, 45, said in an interview at the Luxembourg Ministry of Finance.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.