Novagalicia Bank has been ordered to pay compensation after knowingly selling the shares to the infant.
The court of Ponferrada declared the sale was null and void, adding that 4,800 euros must be refunded and invested in subordinate shares and cover legal costs.
Although the share subscription is the name of the baby’s parents, the shareholder’s name was of the newborn.
The child’s parents were not aware this had happened and the court said the contract was invalid if one of the parties, being the child, was not in possession of all the information.
The bank insisted that it had supplied documents giving the full terms and conditions but a judge ruled that there was no evidence of this, adding there would be no way a baby could understand the full nature of the financial product sold.