Linear Investments Limited v Financial Ombudsman Service Limited

Linear Investments Limited v Financial Ombudsman Service Limited

Linear Investments failed to comply with FCA COBS 3.5.3R by relying solely on self-certification and not investigating inconsistencies or requiring evidence; the Ombudsman’s compensation benchmark was rational given the client’s risk profile; however, Professor Willcocks’ misrepresentations were causative and warranted a reduction for contributory negligence, requiring the quantum to be remitted to the Ombudsman.

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
Judicial Review Appeal / Court of Appeal Judgment
Outcome
Appeal allowed in part; quantum remitted to Ombudsman for reconsideration of contributory negligence.
Legal Topics
Client Classification Under FCA Rules, Contributory Negligence, Compensation Calculation, Judicial Review Standards
Financial Services Regulation Administrative Law Contract Law Client Classification Under FCA Rules Contributory Negligence Compensation Calculation Judicial Review Standards

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 18 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Linear Investments Limited

Appellant/claimant

Financial Ombudsman Service Limited

Respondent/defendant

Leslie Willcocks

Interested Party

Procedural Posture

Judicial Review Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether Linear Investments 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 failed to comply with FCA COBS 3.5.3R by relying solely on self-certification and not investigating inconsistencies or requiring evidence; the Ombudsman’s compensation benchmark was rational given the client’s risk profile; however, Professor Willcocks’ misrepresentations were causative and warranted a reduction for contributory negligence, requiring the quantum to be remitted to the Ombudsman.

Court Disposition

Appeal allowed in part; quantum remitted to Ombudsman for reconsideration of contributory negligence.

Orders

  • Dismissal of appeal on liability and compensation benchmark.
  • Allowing appeal on contributory negligence; quantum to be reconsidered by Ombudsman.