In a recent Irish decision, Haughey v. Davy (Unreported
High Court 10/4/14), the plaintiff succeeded in an action for
damages in relation to loss suffered on investment in contracts for
difference (CFDs) on the basis that the plaintiff was not in the
full of his intellectual, physical and mental health, and the
defendant should have advised him not to invest in CFDs or switched
him to a execution only account, if insisted on making the
investments.
The defendant offered discretionary, advisory and execution only
accounts. The discretionary account would mean that the defendant
would make investment decisions for the investor. An advisory
account would mean that the defendant would give investment advice,
but the decision as to where to invest was a decision for the
client. An execution only account would mean that the client
decided on investments without input from the defendant.
