Following Henderson v. Merrett Syndicates Ltd (1994), this test has been accepted as the correct basis of liability where issues of a duty of care and economic loss arise as they do in professional negligence cases. The giving of advice and providing a service call of a duty of care when the party concerned assumes or undertakes a responsibility to another. In this case the managing agents at Lloyd’s owed a duty of care to names who had suffered disastrous financial losses following the negligent management of the syndicates.