The liability of banks for negligent advice

The liability of banks for negligent advice: time to go back to basics?

Recent case law on financial misselling claims places unwarranted obstacles in the way of claimants wishing to complain of unsuitable financial products recommended by their banks.

Key points?

• According to Hedley Byrne, banks have no duty to advise their customers, but if they choose to do so they owe a duty of care. ??
• Recent mis-selling cases have paid too little regard to this authority, preferring a more sceptical case-by-case approach much influenced by Springwell. ??
• This case-by-case approach unduly favours banks. To avoid a repeat of the mis-selling scandals of the 2000s, there needs to be more accountability. A return to basic Hedley Byrne principles is long overdue.

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