Actuaries’ duties to third parties

A recent case has considered the extent to which advisers owe a duty of care to third parties who rely on their advice.

When an adviser is sued by a client for negligent advice, the client is relying on a contractual relationship with the adviser. However, when a third party who claims to have relied on the advice sues the adviser, the position is more complicated. So when is a third party entitled to rely on such advice?

The recent case of Precis v Mercer is the latest in a long line of legal cases on this issue. The Court’s decision in this case might come as a (small) relief to the actuarial profession, and advisers in general, and will also be of interest to trustees of pension schemes.