High Court judgment to shake advice world
The High Court in Wellington found Church and Moneyworks had breached their duty of care by recommending investor Neil Armitage have too large an exposure to finance companies.
Armitage had completed a risk profile which found him to have a 'conservative' risk profile and the Court ruled Church had failed to provide competent advice after an "imprudent concentration" of funds in four finance companies.
Church was also found to be negligent in recommending the ING credit opportunities fund (COF) as a fixed interest component of the investment after Justice Dobson found the COF was not a fixed interest investment, despite documentation to suggest it was.
Church's advisers said they would appeal the ruling on the grounds that her advice met industry standards at that time and that she was entitled to rely on material provided by ING about the fund.
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