Regulatory obligations and implied contractual terms

  • July 2010
  • Client publication/article

In the case of Redmayne Bentley Stockbrokers v Isaacs (June 2010), the High Court considered whether the "suitability" obligations imposed by MiFID and implemented in COBS 9 of the FSA Handbook have the effect of changing the contractual relationship between a firm and its client, even though the express terms of the contract made no reference to the firm’s regulatory duties.

This paper considers:

  • when the suitability requirement applies where the firm provides both execution-only and advisory services
  • when regulatory requirements are implied into the contractual relationship
  • whether there is a contractual duty to advise against risk taking
  • the effects of a duty to exercise reasonable skill and care
 
 

Contacts

 

Ruth Fox (partner), Jan Putnis (partner), Ben Kingsley (partner)

 
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