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Irwin Mitchell Trust Corp v PW [2024] EWCOP 16: Court of Protection holds professional deputies cannot appoint connected asset managers; appointments are voidable for actual conflict; beauty parade process insufficient

Published on: 09 April 2024

Published by a LexisNexis PI & Clinical Negligence expert
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Irwin Mitchell Trust Corp v PW [2024] EWCOP 16

What are the practical implications of this case?

A Deputy is a fiduciary and must not place itself in arrangements where duty and self-interest collide. This judgment indicates that principle has been overlooked in practice, fostering a sizeable - and lucrative - habit of appointing linked investment managers or advisers. The ruling is, accordingly, a significant restatement of the law and a clear signal that the court will not accept intentional conflicts of interest. The potential financial fallout for the businesses involved (and not only Irwin Mitchell) could be considerable.

What was the background?

PW lacked capacity to manage her property and affairs. Irwin Mitchell’s Trust Corporation (IMTC) was appointed as Deputy. After a process assessing other asset managers alongside IMAM, in which PW’s husband participated, IMAM was chosen to oversee her investments. Some time later an application for a statutory Will was made, and during that process the Official Solicitor (OS) identified a potential conflict arising from IMAM’s appointment...

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