View more on these topics

Warning over end to negligence time limits

Insurance law firm Reynolds Porter Chamberlain has warned IFA firms and insurers that time limits on negligence cases against them may no longer exist.

The warning comes after a series of Court of Appeal and High Court rulings effectively abolishing the Latent Damage Act&#39s 15-year time limit on negligence cases.

It means that IFAs could be sued by a claimant at any time after a supposed incident of misselling or bad advice.

Previously, the act barred all claims 15 years after the relevant events took place unless any fact relating to the claim had been “deliberately concealed” by the adviser.

According to RPC, the normal interpretation of deliberate concealment is similar to fraud and therefore considered it reasonable not to impose a time limit on such cases.

It points to a recent Court of Appeal case which scrapped the time ceiling on all acts carried out deliberately which cause a breach of a professional person&#39s duty of care.

This would include any negligent act rather than just acts deliberately intended to breach a duty of care.

RPC partner Jonathan Davies says: “Any act will always be deliberate. If it was negligent, that amounts to a breach of duty. In theory, this would allow wild scenarios such as the current Archbishop of York suing the architect that, in medieval times, designed his archbishop&#39s palace on a flood plain.”

Recommended

Bring order to sharing

We started to look at the imminent introduction of pension-sharing orders last week and next week we will look at how these orders will be treated by the courts and by solicitors in practice.Here, we look in more detail at the technical aspect of sharing orders.Funded money-purchase schemes are the easiest type of scheme to […]

The Express route to Northern Ireland

Mortgage Express is taking its specialist lending products to Northern Ireland after demand from intermediaries.Northern Ireland has a different legal system from Eng land and Wales and Scotland. This means the Bradford & Bingley specialist lending arm has had to draft new documentation to make its products applicable in Northern Ireland.Borrowers can access Mortgage Express […]

AIG Life releases trust pack for IFAs

Financial services company AIG Life has released a trust pack for IFAs aimed at explaining trusts and their benefits to clients. AIG Life claim the pack explains the roles and responsibilities of trustees and the advantages to investors of using trusts. It covers absolute, power of appointment, gift & loan and discretionary trusts and explains […]

Scottish Life Mortgages appoints new sales manager

Scottish Life Mortgages have appointed former Chelsea Building Society assistant regional sales controller Paul Fryers as its new regional sales manager.Fryers will be responsible for developing and maintaining relationships with IFAs in the Northern Ireland, Scotland and North of England mortgage market.Commenting on his appointment, Scottish Life Mortgages chief executive says “We are delighted Paul […]

Changes to early exit pension charges

In November last year, the FCA announced that from 31 March 2017, early exit pension charges will be capped at 1% for those customers who are eligible to access their retirement savings from age of 55. The rules also state that for new personal pension plans started after that date, or on new increments into […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment