Timely Pursuit Of Pension Negligence Claims

Financial planning of one's affairs usually takes place over a number of years, revisiting investments, considering tax relief, and possibly transferring from one pension scheme to another. As with all walks of life, sometimes mistakes are made and the advice received is wrong. The continuing nature of obtaining and receiving financial advice and the restructuring of financial firms, however, can make it difficult to pinpoint when a claim arises and who is responsible.

When does a claim arise?

A cause of action accrues in negligence from the moment a negligent act or omission has occurred and caused loss. Usually a claimant has 6 years from this moment to bring a claim, however, the nature of financial advice means that it can be a long time before the error is discovered.

The law provides for an extension of the usual 6 year period where a claimant does not have the necessary knowledge to bring a claim. In pension cases, individuals may not know for some time:

that they have suffered a loss that an error was made which caused the loss; or the identity of the negligent adviser/company In these circumstances the law provides a further 3 years from the date of knowledge to bring the claim. This can have the effect of extending the limitation period for bringing a claim for a significantly longer period, however, there is a long-stop for all cases of 15 years from the date of the negligence, after which time a claim cannot be brought, regardless of whether or not the individual had the requisite knowledge.

What is knowledge?

A person's knowledge is not limited to what they actually believed, but includes what they might be reasonably expected to know based on the facts available to them and which they might reasonably seek through professional advice. What is not necessary is knowledge that the advice was negligent. Knowledge of the material facts about the damage suffered can suffice and will start time running for the date of knowledge extension.

Our article ' When is it too late to sue for negligence?' provides more information on the time limits for bringing a claim in negligence, the test for date of knowledge, and how to stop...