R (Berkeley Burke SIPP Administration Ltd) v Financial Ombudsman Service Ltd

Subject Matter

FINANCIAL SERVICES — Ombudsman scheme — Jurisdiction — Claimant providing and administering self-invested personal pensions — Claimant accepting application by customer to invest pension funds in particular scheme on execution-only basis — Scheme proving to be fraudulent — Ombudsman deriving obligation on claimant to conduct due diligence on scheme from regulator’s high-level Principles and upholding customer’s complaint against claimant — Whether permissible to create due diligence duty by reference to Principles — Whether duty conflicting with regulator’s rule requiring firms to execute specific instructions from customers — Financial Services and Markets Act 2000 (c 8), s 228(2) — FCA Handbook, PRIN 2.1.1R(2)(6), COBS 11.2.19R

[2018] EWHC 2878 (Admin); [2019] Bus LR 437; [2020] 1 BCLC 783; [2018] WLR (D) 669, QBD

Commentary

New Law Journal
Is the grass always greener? (2019) 169 NLJ 7825, p 13