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Although this section of the book (and that before it on misrepresentation) cover the residual rules of applicable common law, it should be kept in mind that as regards non-disclosure in the past liability policies commonly contained clauses that altered the basic legal position. 1 Moreover, it should be recalled that significant changes in the law were made under section 138 of the Financial Services and Markets Act 2000 (FSMA), in the form of “rules” and “guidance” by the Financial Services Authority (FSA). 2 However, some of these rules apply only to “consumers” in the sense of natural persons acting for purposes outside their trade, business or profession.
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