Lloyds TSB General Insurance Holdings Ltd and others v Lloyds Bank Group Insurance Co Ltd; Abbey National plc v Lee and others

Abstract

Private personal pension plans had been represented and sold by representatives of the two claimants in these conjoined actions to members of the public as an alternative to occupational pension schemes. As is only too well known by now these sales were in contravention of the obligation to give ‘best advice’ under the Financial Services Act 1986 and applicable LAUTRO Rules and Code of Conduct. Both claimants had as a consequence incurred, in aggregate, considerable liabilities in respect of their sales of private personal pension plans. Viewed individually, however, the claims were modest in size and did not amount to more than £15,000. In view of the large total amount the Lloyds TSB claimants sought to claim under an indemnity policy issued by the defendant in the first action which provided (inter alia):

Citation

Moore‐Bick, J. (2001), "Lloyds TSB General Insurance Holdings Ltd and others v Lloyds Bank Group Insurance Co Ltd; Abbey National plc v Lee and others", Journal of Financial Regulation and Compliance, Vol. 9 No. 4, pp. 381-384. https://doi.org/10.1108/eb025091