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At Specters we have a specialised team of lawyers dealing specifically with professional negligence claims against a varying range of professionals arising out of financial misconduct.

Financial professional negligence claims

Professional negligence claims arising out of the provision of negligent financial advice or conduct can be made against both legal professionals and financial professionals such as accountants, auditors, IFA’s, brokers, actuaries, pension advisers and trustees.

All of the above owe their clients a duty to act with reasonable skill and care as judged by the standard of a reasonably competent professional specialising in the area to which they hold themselves out as having expertise in. In addition, professionals involved in the provision of financial advice may also owe other obligations to clients, such as fiduciary duties, or may be subject to regulatory law such as the provisions in the Financial Services and Markets Act 2000.

What negligence can lead to a claim?

Claims against legal advisors for financial misconduct can arise from negligent tax advice, misappropriation of client funds, carrying out acts contrary to ‘the general prohibition’ in FSMA 2000, failing to detect fraud and failing to conduct appropriate due diligence.

Claims against accountants or auditors can arise from negligent tax advice, failing to meet tax deadlines, errors in accounts or tax returns, failing to submit VAT returns, negligent advice on VAT recoverability and negligent valuation of company shares.

Claims against financial advisors and brokers can arise from negligent financial advice, negligent pension advice, negligent investment advice, failing to advise on risks of an investment, negligence advice in relation to tax avoidance schemes, and recommending investments which do not match their clients’ risk profile or needs.

In addition, professionals such as accountants or legal advisors may act as trustees, in which case they may owe a number of other duties to their client including the duty to properly manage and invest trust funds. The trustee must select investments authorised by either statute or the trust instrument and consider the relevant criteria in selecting investments, as well as taking necessary advice on investments if it is outside of their competence.

In order to be successful in a professional negligence claim, the burden of proof is generally on the claimant to prove that they were owed a duty of care by the professional, whether through contract, tort or legislation, secondly that the professional breached that duty of care, and lastly that the breach caused the claimant a financial loss.

How can Specters help you?

The team at Specters are experienced in dealing with claims against financial advisors, leading to successful resolutions on behalf of their professional negligence clients. Our expertise allow us to quickly identify the prospects of success of a claim from as early as the initial call.

Finance and legal professionals should have the benefit of professional indemnity insurance in order to cover them in the event of a professional negligence claim, and therefore if you consider that you have suffered loss due to negligence advice and/or conduct by your instructed professional, you should have a discussion with a member of the team at Specters today.

Please call us on 0300 303 3629 or visit our website to find out your options.