Rocker v Full Circle Asset Management

Rocker v Full Circle Asset Management

FCAM breached contract and statutory duty by exceeding the agreed medium risk mandate and failing to operate an automatic stop loss policy at 5% loss, causing recoverable capital loss; FCAM did not breach obligations regarding performance benchmark or provide grounds for opportunity loss damages.

Parties
Claimant: David Rocker; Defendant: Full Circle Asset Management
Jurisdiction
England and Wales
Judgment Date
23 November 2017
Procedural Posture
Civil / Judgment
Outcome
Claim partly allowed
Legal Topics
Breach of Contract, Breach of Statutory Duty, Negligence, Investment Management, Risk Assessment, Stop Loss Policy, Suitability Assessment, Damages

Case Brief

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Parties

David Rocker

Claimant

Full Circle Asset Management

Defendant

Procedural Posture

Civil / Judgment

  1. 1 Whether FCAM breached contractual and statutory duties regarding risk mandate and stop loss policy
  2. 2 Whether FCAM failed to provide suitable investment management and information under COBS
  3. 3 Whether FCAM is liable for losses and opportunity loss

Ratio Decidendi

FCAM breached contract and statutory duty by exceeding the agreed medium risk mandate and failing to operate an automatic stop loss policy at 5% loss, causing recoverable capital loss; FCAM did not breach obligations regarding performance benchmark or provide grounds for opportunity loss damages.

Court Disposition

Claim partly allowed

Orders

  • FCAM to pay damages to Mr Rocker for breach of mandate and stop loss policy, quantum to be recalculated per judgment findings
  • No damages for opportunity loss