Adviser lawsuit drought not all good news
Brian Henry, who represented financial adviser Carey Church in the Armitage v Church case, says that the number of similar cases was “drying up”, largely because of the cost involved: “Most of these guys aren’t insured and can’t afford to go to court.”
However, he said the bigger trend long-term was the move to private arbitration as a result of regulations requiring financial advisers to sign up to dispute resolution schemes.
This behind-closed-doors process had the potential to become an “abyss” and would shut down the courts from ever seeing that sort of litigation again, Henry said.
“We had a sudden rush [of cases] building up case law which is good; the law had really started to develop for the next little bit but the system that’s been set up has put a stop to that which I think is horrific.”
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