ABSTRACT
This chapter considers the circumstances in which people who are neither trustees nor fiduciaries will be liable for any loss suffered by beneficiaries as a result of some breach of trust. It also considers some High Court cases decided since Abou-Rahmah v Abacha and the ways in which they have dealt with these difficulties. This liability is based on the defendant's unconscionability, dishonesty or knowing actions when receiving property further to breach of trust. This area of law has subsequently been bedevilled by a see-sawing between preferences for an objective and for a subjective approach to this area. It suggests that an equitable remedy of liability to account should permit a flexible obligation on the part of the defendant to account to the extent to which she is culpable for the loss. Among the positive obligations which are imposed on regulated investment advisors and other financial institutions are requirements that they act in the client's best interests in all circumstances.
