Financial products are often long term in nature. Where a recommendation is poor, it may be some time before the client realises that he has been badly advised. Section 14A provides for a special limitation period in the tort of negligence (and negligence only) for those who have suffered a loss but do not have the requisite knowledge relating to that loss. The relevant theoretical test is set out in the leading House of Lords case of Haward v Fawcetts (2006). However, the practical application of that test can prove far from straightforward. This is particularly true in the financial services sector where the products recommended can be complex and the true causes of any loss far from clear.
“There Are More Questions Than Answers”: The operation of s 14A of the Limitation Act 1980 in financial mis-selling claims, Chancery Bar Association Guernsey seminar, The Duke of Richmond Hotel, St Peter Port, Thursday 17 October 2013. Click here to read the seminar notes on the Chancery Bar Association website.