Claims against accountants for negligent mortgage endowment advice soared in the 12 months to June 2006.
The Alexander Forbes Professions Accountants' Claims Survey, said 20% of all notifications of negligence against accountants were for endowment advice during the period – up from an average of 12% in the corresponding period in 2004/05.
However, the highest numbers of notifications were for negligent taxation advice, which accounted for 27% of all claims.
The largest fall in claims was for investment advice, which fell from 5% in 2004/05 to under 2% in 2005/06.
Mark Bracher, executive director, Alexander Forbes Professions said: “An increasing number of home owners are finding that their endowment policies will fail to pay off their mortgages and they are seeking recompense from their accountants for negligent advice. This has been compounded by a number of specialised claims farmers who have made a business of encouraging home owners to seek compensation from their advisers.”
