August 28, 2025
Investors Compensation Scheme v. West Bromwich Building Society [1997] UKHL 28
Investors who had suffered losses from Home Income Plans claimed compensation from the Investors Compensation Scheme. The case concerned whether claims against West Bromwich Building Society had been validly assigned to ICS under the Claim Form. The House of Lords established fundamental principles of contractual interpretation, holding that interpretation must consider background context and business common sense. Facts The Investors Compensation Scheme Ltd (ICS) was established under section 54 of the Financial Services Act 1986 to compensate investors with unsatisfied claims against authorised persons. Home owners, mainly elderly retired people, had been advised by financial advisers to enter into ‘Home
