Ms A has a successful financial planning business.She employs Mr B as a trainee adviser.Mr B is bright and keen and will make a good adviser in the future.Ms A makes it very clear to Mr B, however, that although he will be able to advise clients in the future, at the moment he cannot have any contact in terms of recommendations.

One day when everyone else is out of the office a regular client comes in.She needs some cash immediately and wants to know which of two parcels of shares she should sell.Mr B knows the answerthe day before he was at staff training where the performance of the two companies was compared.He tells the client to sell parcel X.

The client sells parcel X and incurs a large CGT liability.This would not have occurred if she had sold parcel Y.

Is Ms A liable for Mr B's negligent advice?