Courts tackle the ‘duty to explain’ in mis-selling claims

Outside of an advisory relationship, do financial institutions bear a duty to provide an explanation of the products being sold? The issue remains open for argument under the common law, report Abdulali Jiwaji and Nils de Wolff.

Abdulali Jiwaji is a partner and Nils de Wolff an associate at London-based boutique law firm Signature Litigation (www.signaturelitigation.com). Contact them on abdulali.jiwaji@signaturelitigation.com and nils.dewolff@signaturelitigation.com.

Instances of financial product mis-selling continue to make headlines and provoke outrage nearly ten years after the financial crisis. Mis-selling claims broadly pertain to breach of statutory duty, misrepresentations, and in contract or in tort law relate to the advice itself.