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CONDUCT: Call of Duty II

28 September 2012  

David Robinson reviews a recent case on an accountant’s duties of care to third-party investors in an existing client

In Arrowhead Capital Finance Ltd (in Liquidation) v KPMG LLP [2012], the High Court has provided clarification on an accountant’s duty of care to investors in one of its clients that will be welcomed by both accountants and their professional indemnity insurers alike, holding that KPMG owed no duty of care to a third- party investor. The case will also be of considerable interest to auditors, who are often the subject of similar claims.

Additional Info

  • Case(s) Referenced:

    Arrowhead Capital Finance Ltd (in Liquidation) v KPMG LLP [2012] EWHC 1801 (Comm)

    Caparo Industries plc v Dickman [1990] 2 AC 605