An insurance broker who failed to set up a professional indemnity insurance policy for his client has escaped paying damages as no loss was suffered by his client. Rodney Channon was a chartered accountant and also a director of a…read more
FCA plans changes to professional indemnity insurance
The FCA is planning changes to its professional indemnity insurance (PII) rules for Financial Advisers. The proposals were revealed in a consultation paper on reforms to the industry’s lifeboat fund, the Financial Services Compensation Scheme (FSCS). The FCA says it…read more
High Court overrules Financial Ombudsman in £223k claim
The High Court has overruled the Financial Ombudsman Service, awarding a 96 year-old woman £223k for flawed inheritance tax advice. The case also provides useful guidance about when a person has ‘knowledge’ of a claim for the time-limits in bringing…read more
Advisers face liability claims throughout their retirement
More than eight out of ten financial advisers are concerned about the risk of negligence claims in retirement. Eighty five per cent of respondents to the Association of Professional Financial Advisers’ (APFA) latest ‘Cost of Regulation’ survey said that the…read more
IFAs can be liable for execution-only advice
Financial advisers can be deemed to have given advice and be held liable for giving advice – even where they believe that they have clearly stated that they are acting on an execution-only basis. A recent Financial Ombudsman Service (FOS)…read more
Suitability reports in the spotlight
Regulators have met with financial advisers’ representatives to develop guidance on suitability reports. The Financial Conduct Authority (FCA) and Financial Ombudsman Service (FOS) have held talks with the Association of Professional Financial Advisers (APFA) and the Personal Finance Society (PFS)….read more
Enablers of contentious tax schemes face huge fines
Accountants and financial advisers who recommend contentious tax avoidance schemes could face tough new penalties under HMRC proposals.< The plans set out in a consultation document, could mean that ‘enablers’ of tax avoidance schemes face fines of up to 100...read more
‘Look like an idiot’ admission sinks negligence claim
An unexpected witness statement coupled with limited evidence of negligence or loss demonstrated the risk of making a speculative negligence claim. The unsuccessful claimant was hit with punitive costs by the judge who said that they were trying to put…read more
Accountancy firm accused of conflict of interest in celebrity resort saga
Top 20 accountancy firm Wilkins Kennedy is being sued for negligence by the owners of a Caribbean hotel resort. Harlequin Property is claiming £50 million in damages for professional negligence and conflict of interest. The case has been has been…read more
Advisers accused of holding back information in ‘death bond’ dispute
Investors in a so-called ‘death bond’ fund who have lost 40{0a6a65c996ed4169444354e707b897cdb00dbefc1d0429e8febb9bf11027ba53} of their original capital are raising money to sue the fund’s parent company, EEA Fund Management. Meanwhile, the head of the EEA Investors’ Group has told FT Adviser that…read more
