UPDATE 1-Notz Stucki to partially reimburse Madoff clients

ZURICH, April 23 (Reuters) - Geneva-based wealth manager Notz Stucki said on Thursday it will partially reimburse clients who lost a reported $750 million in Bernard Madoff's $65 billion fraud, following in the steps of larger rivals in Switzerland.

The company said it would compensate clients with a discretionary management mandate -- meaning that managers at Notz Stucki decided how to invest their assets -- with up to 120 million Swiss francs ($103.2 million).

Clients who specifically asekd for access to Madoff will not be compensated however, a spokesman for Notz Stucki told Reuters.

The spokesman said the compensation payments would be held by a 'special entity', but that the legal structure of the deal was yet to be finalized.

The spokesman aslo said the wealth manager had taken its lead from Union Bancaire Privee and from Santander unit Optimal, two Geneva-based companies that have made similar offers to clients nursing Madoff losses.

($1=1.163 Swiss Franc)

(Reporting by Martin de Sa'Pinto, editing by Will Waterman) Keywords: MADOFF/NOTZSTUCKI ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.