Independent financial advisors (also known as IFAs), financial consultants, and other brokers all owe their clients a duty of care. When a client instructs or hires them, they have a reasonable expectation that the IFA will use all their skill and competence to secure a positive financial outcome for them – and with so many rules, regulations and codes to comply with, you should feel safe and satisfied that your IFA will do all of that for you.
Unfortunately, there are some financial advisors who make mistakes in their work – and if those mistakes have a negative impact on your finances, you may be able to make a claim against them.
Here are some examples of professional negligence among financial advisors:
Bad investment advice
If you receive bad investment advice from your financial advisor, and it negatively affects your finances, you could bring a professional negligence claim against them.
Advised contrary to your attitude to risk
All good financial advisors will take into account your attitude to risk – but if they offer advice that is either inconsistent with this or does not take it fully into account and it results in you losing money, you could recoup your losses via a professional negligence claim.
Investment value has dropped dramatically or has become worthless
If the value of one of your investments has dropped significantly or become close to worthless, you could bring a professional negligence claim against the advisor who recommended the investment.
Lost money on an investment you were told was ‘low risk’
If you’ve been informed that an investment is distinctly low risk, it’s natural to want to see returns, even if they’re small. If you experience losses on an investment that you were assured was fairly low risk, you may be able to bring a claim against the advisor who recommended it.
Advisor received a huge commission on an inappropriate product for you
If your financial advisor advised that you invest in a product that was unsuitable for your needs – which coincidentally had the side-effect of earning them a large commission – you could bring them to court for professional negligence.
Incorrect pension or annuity advice
Financial advisors are also on hand to offer advice on the right pension or annuity for you – but if the advice given to you was incorrect and you’re now unable to claim your enhanced annuity as a result, you could be eligible to make a professional negligence claim.
If you’ve been affected by any of the issues listed above, or if you feel that your IFA has acted negligently in any other way, our expert team of specialist professional negligence solicitors could help you recoup your losses.