How to seek compensation if you have had negligent financial advice

Want to know how to seek compensation if you have had negligent financial advice from a financial advisor?

Then find out more in our latest blog from our Professional Negligence team.

Do I have a negligence claim against a financial advisor?

Financial advisors provide financial advice and recommendations to their clients based on their personal financial situation.

The advisor has a duty of care to their clients and there is a high level of trust placed upon them when it comes to managing their clients’ financial affairs.

If your financial advisor fails to deliver their service to the expected profession standard, they may be liable to pay yo ucompensation for your financial loss.

The client has every right to bring forward a complaint, or claim, if financial loss is suffered as a result of the advice they received.

Planning your finances is a necessity for those with assets to invest, savings, pensions etc.

Unfortunately, negligent advice can occur and can have a significant impact on not only your finances but also your life.

How can I prove that a financial advisor has been negligent?

When a professional fails to perform their role to the required professional standard, a claim may be brought based on the following:
– a breach of contract;
– a breach of duty of care;
– a breach of statutory duty;
– a breach of fiduciary duty.

Examples of types of financial negligence
• Advising clients to invest in unsuitable high-risk schemes.
• Not ensuring that the client can afford a particular investment.
• Advising clients to invest in unsuitable schemes.
• Advising clients to switch investments so the advisor receives a commission payment.
• Giving incorrect tax advice.
• Accounting errors.

Steps you can take
1. Raise a complaint with the advisor and if the complaint is not upheld, take your complaint to the Financial Ombudsman Service (‘FOS’). FOS’ aim is to resolve disputes fairly and to ensure compensation is paid to those who are out of pocket as a result of negligent advice.

2. If the financial advisor is no longer trading, take your complaint to the Financial Services Compensation Scheme (FSCS), as a compensator of last resort.

3. Issue court proceedings against the financial advisor for negligence.