The BB principal of liability
Written by Charlie Palmer on 25/02/2019

The BB principal of liability

Firm called “Portafina” is considering a legal challenge against FOS.  FOS ruled that it was liable for a SIPP fund choice, when Portafina advised the client to switch the DB scheme into the SIPP., and then passed the file back to another firm who had originally introduced the case, and that firm put the client into unsuitable investments.   

The Berkeley Burke principal holds true.  All firms in the client transaction-chain are jointly and severally liable, no matter how they try to restrict their actions.  This principal has been consistent since the UCIS / NMPI scandal first broke in 2008. See earlier article on Berkely Burke https://ifac.eu/news/view.php?news_id=271 who are finally putting this same case to the Court of Appeal.


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