... Nicholls in Tan stated that dishonesty is the touchstone of liability for knowing assistance (at para.387). The decision of the Privy Council in Tan and its acceptance by the House of Lords in Twinsectra Ltd v Yardley and others [1999] Lloyd's Rep Bank 438 has brought about an important shift in the law on accessory liability (Moffat, 2005). Twinsectra Ltd lent money to Mr Yardley. Mr Sims, the solicitor acting for Mr Yardley, gave an undertaking that the loan monies would be used to purchase properties only. Mr Sims paid over the loan monies to a second solicitor, Mr Leach, who knew of the undertaking which had been given by Mr Sims. Nevertheless, Mr Leach applied the funds according to Mr Yardley's instructions, which were not in agreement with the undertaking. It was alleged that the payment of funds by Mr Sims to Mr Leach constituted a breach of trust, ...

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