, IRM1501 ASSIGNMENT 2 SEMESTER 2 2025 ANSWERS
DUE DATE: SEPTEMBER 2025
Global & Local Investment Advisors (Pty) Ltd v Fouche (71/2019) [2020] ZASCA 8; 2021
(1) SA 371 (SCA)
1. Facts
The dispute arose from a contractual relationship between Global & Local Investment Advisors
(Pty) Ltd (“the appellant”), a registered financial services provider, and Fouche (“the
respondent”), who engaged the appellant for comprehensive investment advisory and portfolio
management services. The respondent alleged that the appellant had provided negligent
advice which resulted in substantial financial losses, contending that the appellant failed to
exercise the requisite standard of care expected of a professional financial advisor operating
within the South African legal and regulatory framework. The appellant, on the other hand,
maintained that it had acted in accordance with its contractual obligations and the applicable
industry standards, including all relevant risk disclosure and limitation-of-liability clauses
embedded in the agreement. The High Court proceedings were primarily focused on
determining whether the appellant’s conduct constituted a breach of contractual or delictual
duties, whether causation between the alleged negligence and the financial losses had been
established by the respondent, and the extent to which the limitation clauses shielded the
appellant from liability. The factual matrix also explored the timing and content of advice given,
the adequacy and clarity of risk disclosures provided to the respondent, the level of
professional skill and diligence exercised by the appellant, and the overarching question of
whether the financial losses claimed were attributable directly to the appellant’s conduct rather
than to general market volatility or external economic factors beyond the appellant’s control.
The case thus encapsulated critical issues at the intersection of contractual interpretation,
professional responsibility, and client protection in the financial services sector, raising
complex questions regarding the boundaries of professional liability and the enforceability of
contractual protections1.
1
Global & Local Investment Advisors (Pty) Ltd v Fouche (71/2019) [2020] ZASCA 8; 2021 (1) SA 371 (SCA).
DUE DATE: SEPTEMBER 2025
Global & Local Investment Advisors (Pty) Ltd v Fouche (71/2019) [2020] ZASCA 8; 2021
(1) SA 371 (SCA)
1. Facts
The dispute arose from a contractual relationship between Global & Local Investment Advisors
(Pty) Ltd (“the appellant”), a registered financial services provider, and Fouche (“the
respondent”), who engaged the appellant for comprehensive investment advisory and portfolio
management services. The respondent alleged that the appellant had provided negligent
advice which resulted in substantial financial losses, contending that the appellant failed to
exercise the requisite standard of care expected of a professional financial advisor operating
within the South African legal and regulatory framework. The appellant, on the other hand,
maintained that it had acted in accordance with its contractual obligations and the applicable
industry standards, including all relevant risk disclosure and limitation-of-liability clauses
embedded in the agreement. The High Court proceedings were primarily focused on
determining whether the appellant’s conduct constituted a breach of contractual or delictual
duties, whether causation between the alleged negligence and the financial losses had been
established by the respondent, and the extent to which the limitation clauses shielded the
appellant from liability. The factual matrix also explored the timing and content of advice given,
the adequacy and clarity of risk disclosures provided to the respondent, the level of
professional skill and diligence exercised by the appellant, and the overarching question of
whether the financial losses claimed were attributable directly to the appellant’s conduct rather
than to general market volatility or external economic factors beyond the appellant’s control.
The case thus encapsulated critical issues at the intersection of contractual interpretation,
professional responsibility, and client protection in the financial services sector, raising
complex questions regarding the boundaries of professional liability and the enforceability of
contractual protections1.
1
Global & Local Investment Advisors (Pty) Ltd v Fouche (71/2019) [2020] ZASCA 8; 2021 (1) SA 371 (SCA).
