FINANCIAL ADVISORS PROFESSIONAL NEGLIGENCE
Claims for damages for professional negligence by a financial advisor usually relates to alleged negligence or breaches of fiduciary duties or contractual duties. A financial advisor has a legal duty to exercise reasonable skill and care and liability may arise as a result of a breach of the duty of care or as a result of breach of contract. A financial advisor also has a fiduciary relationship of trust and confidence and may be liable to pay compensation for breach.
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Adviser Fiduciary Relationship
Compensation claims for professional negligence against a financial adviser often extend well beyond the bounds of simple negligence. Most of the clients of financial advisers have little knowledge of matters relating to finance and investment and place heavy reliance on their financial adviser. The relationship is usually one of loyalty, trust and confidence which gives rise to fiduciary responsibilities unlike any other advisor/client relationship. The usual duties prohibit non-disclosure, conflicts of interest, secret profits and unjust enrichment.
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Reliance on Advice
In order to establish liability for a financial advisors professional negligence it is necessary to show that the client actually placed reliance on the advice given. Where there is advice but no reliance in making an investment decision, no liability arises if loss results from the investment.
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Reasonable Competence Required
A financial advisor holds himself out as an expert or specialist. In cases alleging professional negligence where the financial advisers skill and competence are questioned it is necessary to show that the financial advisor lacked the degree of skill and care ordinarily exercised by a reasonably competent professional financial advisor.
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Negligent Conduct
Conduct of financial advisers which may amount to professional negligence includes :-
- failure to assess the client's needs and financial situation
- failure to establish that whether the client can afford the investment
- advising investment in products unsuited to needs of the client
- failure to warn of the risks of the proposed investments
- financial adviser's financial conflicting interests
- financial adviser taking negligent independent advice on behalf of his client
HELPLINE 0844 915 0135
Professional Negligence Lawyers Association
If you find yourself in the invidious position of having to consider legal action to claim damages for professional negligence against a financial advisor we can help. Our civil litigation solicitors, who are members of the Professional Negligence Lawyers Association deal with claims against financial advisers using the no win no fee scheme and compensation is paid in full. If you would like to know if you have a potential claim just email or use the helpline and we will take full details, carry out a detailed risk assessment and advise you in the clearest of terms whether or not we believe that you have a valid claim for compensation and the value of damages likely to be awarded.
Please Note :- We do not deal with complaints about poor service, bad attitudes or inadequate procedures. We deal with claims involving financial loss that has been or is likely to be sustained.