ABSTRACT
Although this section of the book (and the one before it on misrepresentation) cover the residual rules of applicable common law, it should be kept in mind that as regards nondisclosure liability policies commonly contain clauses that alter the basic legal position. 175 Moreover, it should be noted that signifi cant changes in the law were made under section 138 of the Financial Services and Markets Act 2000 (FSMA), in the form of “rules” and “guidance,” by the Financial Services Authority (FSA). 176 However, some of these rules apply only to “consumers” in the sense of natural persons acting for purposes outside their trade, business, or profession.
