Financial Adviser negligence often leads to a loss of investment by the client, which should never have occurred.
Financial Advisor Negligence
We inherently expect our financial advisors to deliver accurate and expert guidance; however, this is not always the reality.
At Specters, we recognise the significant impact that financial advisor negligence can have on your wealth and financial security. When entrusted advisors fail to exercise the requisite duty of care, whether through imprudent investment recommendations, inadequate due diligence, or mismanagement of assets, the repercussions can be substantial and far-reaching.
Our team of seasoned legal professionals specialises in holding negligent financial advisors accountable, ensuring that you receive the compensation and justice you rightfully deserve.
When does financial adviser negligence occur?
Financial advisor negligence occurs when an advisor fails to meet the professional standards expected of them, resulting in financial harm to their client. This can include providing inappropriate advice, failing to disclose risks, or neglecting to act in the client’s best interests. Mistakes made by financial advisers and Banks often include mis-sold financial products and schemes such as:
Tax mitigation schemes
For example, a failure to advise properly in relation to the risk of HMRC attacking the scheme and serving Advance Payment Notices.
Interest rate swap agreements
An interest rate swap agreement is a complex financial product which was designed to protect the customer against rising interest rates.
Insurance products
The financial adviser failed to adequately explain the life insurance policy to the client, including its suitability and potential consequences.
Investments
For example, the product did not suit the investor’s attitude to risk as it was a high risk for a retired person wanting low/medium risk.
Pensions
For example, where pension savers were sold annuities that did not take into account their poor health/lifestyle or were poor value annuities with better products elsewhere.
Mortgages/ Remortgages
For example, the mortgage end date is after the borrower’s retirement date or non-disclosure of fees, commission or penalties.
Equity release schemes
For example, a failure to warn about spiralling interest costs (typically the debt doubles every 10 years) and other costs such as substantial early repayment charges.
Packaged bank accounts
These are current accounts which are meant to provide extra packaged ‘benefits’. For example travel and mobile insurance.
Incomplete or inaccurate information
In mis-sold claims, the claim typically stems from incomplete or inaccurate information provided by the scheme’s promoter or financial adviser.
Fraud and negligence
The professional, though unwittingly involved in the fraudulent scheme and possibly innocent, may be held liable for your loss due to negligence.
Pursuing a financial advisor negligence claim
If you have experienced financial loss due to the negligent actions of a financial advisor, pursuing a claim can help you recover the compensation and justice you deserve. This process involves proving that the financial advisor owed you a duty of care, breached that duty through actions such as providing inappropriate investment advice, failing to disclose risks, or mismanaging your portfolio, and caused you to incur financial losses as a result.
At Specters, we offer expert guidance throughout this complex process, from gathering evidence and obtaining expert testimonies to navigating the intricacies of legal proceedings. Our distinguished team is dedicated to meticulously managing your claim, ensuring that every detail related to the financial advice you received is scrutinised with precision and professionalism. We are committed to vigorously protecting your rights and achieving a favourable resolution, providing you with the expertise and support needed to hold negligent financial advisors accountable.
If your claim is successful, you may be entitled to compensation for:
- Financial losses directly caused by the negligent advice.
- Interest lost on the mismanaged or lost funds.
We pride ourselves on our meticulous approach and commitment to delivering exceptional legal representation tailored to meet the sophisticated needs of our clients. At Specters, your case will receive the attention and expertise it deserves, ensuring the best possible outcome for your unique situation.
Our financial negligence solicitors
Frequently asked questions
What types of evidence are needed to support a financial advisor negligence claim?
Supporting evidence may include account statements, email correspondence, records of advice given, investment performance reports, and any other documentation that demonstrates the advisor’s actions and the resulting financial impact.
How long do I have to file a claim for financial advisor negligence?
You typically have six years from the date of the negligent act to file a claim for financial advisor negligence. If you only became aware of the negligence at a later date, you may have three years from the date of discovery to bring your claim. It is essential to seek legal advice promptly to ensure you do not miss any applicable deadlines and to assess the specifics of your case accurately.
What compensation can I expect from a financial advisor negligence claim?
Compensation typically covers financial losses directly resulting from the negligence, including lost investment value, missed opportunities, and associated legal costs. The exact amount will depend on the specifics of your case.
How long does the process of a financial advisor negligence claim take?
The duration of the claims process can vary significantly depending on the complexity of the case, the willingness of parties to negotiate, and whether the case goes to court. Some cases may settle in a few months, while others could take several years.
Can I claim against a financial advisor who is no longer practicing?
Yes, you can still pursue a claim against a former financial advisor. It’s important to act quickly and seek legal advice to ensure you comply with any relevant time limits and procedural requirements.
