Unlike other forms of fraud, this offence needs no lie and no false representation. It targets the betrayal of trust by someone who was expected to look after another person's financial interests — a company director, an attorney under a power of attorney, or even a neighbour collecting a pension. For a solicitor, recognising when a relationship carries this kind of financial expectation, and whether it has been abused, is central to advising clients on both sides of an allegation.
This lesson builds your understanding element by element, so you can apply the law cleanly to any set of facts.
What this lesson covers:
- The Offence and Its Elements — what the offence is, why it is a conduct crime, and the four things that must be proved.
- Position of Trust — what counts as a position of financial trust, and how widely it reaches across formal and informal relationships.
- Abuse of the Position — how the position can be abused, including by failing to act.
- Dishonesty and Intention — the two-stage test for dishonesty, the intent required, and how 'gain' and 'loss' are defined.