Fiduciary Duties of Credit Brokers: McWilliam v Norton Finance

In McWilliam v Norton Finance (UK) Ltd the Court of Appeal examined the circumstances in which an independent credit broker owes fiduciary duties to its consumer clients, and is liable to account for commissions received without their informed consent. The court ruled unanimously that fiduciary duties arise between a broker and its client where the client is unsophisticated and places trust and confidence in the broker, irrespective of whether the transaction is an information-only sale or an advised sale. In these circumstances, the broker is liable to account to its client for commissions that were not fully disclosed and consented to by the client.