COUNT FINANCIAL LTD V PILLAY

[2021] NSWSC 99, New South Wales Supreme Court, Justice Stevenson, 17 February 2021

Insurance (professional indemnity) – Exclusion for investment advice – Whether advice on accounting and tax aspects constituted advice "in respect of" an investment

The insured, who was a chartered accountant, held a professional indemnity policy under which the insurers were to indemnify him against any claim "which arises out of the conduct of the Insured's Business by reason of any civil liability incurred by the Insured or by any other person, firm or company directly appointed by and acting for or on behalf of the Insured". The relevant exclusion provided that there was no liability "for, or directly or indirectly arising out of, or in any way involving ... any investment introduced or recommended by the Insured, or where the Insured has given advice in respect of any investment ... ". Claims were brought against him by clients who were given advice with respect to the accounting and tax aspects of various financial products, and the products failed.