KPMG case reaffirms duty of care principle
The High Court has reaffirmed a long-established principle as to whether a duty of care is owed by accountants towards third party investors.
The Arrowhead Capital Finance v KPMG case has also provided further guidance on how to determine the point from which damage accrues in a negligence claim alleging financial loss.
Dragon Futures traded mobile telephones and appointed KPMG to ensure it would be able to claim input VAT. It was vital for Dragon’s business to be able to recover from HMRC the VAT charged on the purchase price of the mobiles.