Performance Benchmarks, Stop Loss Protection And Breach Of Mandate

Rocker v. Full Circle Asset Management Ltd [2017] EWHC 2999 (QB)

In this interesting and detailed judgment, Mr Justice Morris (the Judge) considered the claims of Mr Rocker, a successful businessman, against Full Circle Asset Management Limited (FCAM) for breach of contract, breach of statutory duty and negligence. FCAM provided discretionary fund management (DFM) services and this judgment will be of interest to both providers and users of DFM services and anyone who is required to assess compensation claims relating to DFM portfolios. Mr Rocker partially succeeded in his claim, in that the Judge found he was entitled to damages for the periods when his portfolio had a risk score in excess of his agreed risk profile and also for all losses incurred where a promised stop loss policy should have operated to prevent them. However, DFM providers will take some comfort from the dismissal of Mr Rocker's claim that his portfolio should have reflected the asset allocation