Linear Investments Ltd v Financial Ombudsman Service Ltd [2025] EWCA Civ 1369 (29 October 2025)

Linear Investments Ltd v Financial Ombudsman Service Ltd [2025] EWCA Civ 1369 (29 October 2025)

Linear Investments Limited failed to conduct an adequate assessment of Professor Willcocks’ expertise and experience as required by COBS 3.5.3R, could not rely solely on self-certification, and was not entitled to treat him as an elective professional client. The Ombudsman’s compensation benchmark was not irrational. However, Professor Willcocks’ misrepresentations warranted consideration of contributory negligence, and the matter should be remitted to the Ombudsman to determine an appropriate reduction.

Citation
[2025] EWCA Civ 1369
Parties
Appellant/claimant: Linear Investments Limited; Respondent/defendant: Financial Ombudsman Service Limited; Interested Party: Leslie Willcocks
Jurisdiction
England and Wales
Judgment Date
29 October 2025
Procedural Posture
Appeal (judicial Review) / Court of Appeal Judgment
Outcome
Appeal dismissed on grounds 1 and 2; allowed on ground 3 (contributory negligence)
Legal Topics
Client Classification Under FCA Rules, Judicial Review of Ombudsman Decisions, Contributory Negligence, Compensation Calculation, Regulatory Compliance
Financial Services Law Administrative Law Contract Law Client Classification Under FCA Rules Judicial Review of Ombudsman Decisions Contributory Negligence Compensation Calculation Regulatory Compliance

Case Brief

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Parties

Linear Investments Limited

Appellant/claimant

Financial Ombudsman Service Limited

Respondent/defendant

Leslie Willcocks

Interested Party

Procedural Posture

Appeal (judicial Review) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether Linear Investments Limited complied with FCA COBS 3.5.3R in classifying Professor Willcocks as an elective professional client
  2. 2 Whether the Ombudsman’s compensation benchmark was irrational
  3. 3 Whether Professor Willcocks’ misrepresentations warranted a reduction for contributory negligence

Ratio Decidendi

Linear Investments Limited failed to conduct an adequate assessment of Professor Willcocks’ expertise and experience as required by COBS 3.5.3R, could not rely solely on self-certification, and was not entitled to treat him as an elective professional client. The Ombudsman’s compensation benchmark was not irrational. However, Professor Willcocks’ misrepresentations warranted consideration of contributory negligence, and the matter should be remitted to the Ombudsman to determine an appropriate reduction.

Court Disposition

Appeal dismissed on grounds 1 and 2; allowed on ground 3 (contributory negligence)

Orders

  • Matter remitted to the Ombudsman to determine an appropriate reduction for contributory negligence