Due to the high numbers of financial services and investment opportunities on offer in the market place today, many people choose to use the services of a financial adviser -often an independent financial adviser or IFA, though some preferred to stick with advisers who are tied to a particular financial institution or bank – which means that the adviser in question will only be able to offer you advice on financial products from that particular financial institution or bank.
Unfortunately however, some people become victims of financial advisor negligence, whereby the plans of those wishing to invest their money do not always go quite as smoothly and the investments question are not always a safe and solid as they wish them to be.
Clients of such services often place heavy reliance on the expertise of their financial advisers due to their own limited knowledge of financial investments and expect their advisor to prioritise their long-term financial well-being in any dealings with their investments. It is therefore imperative that the conduct of an advisor does not put their client’s finances at risk.
Mis-sold mortgages loans, life insurance, payment protection insurance (PPI), equity release negligence and pension negligence claims can all come about as a result of the professional negligence of financial advisors. However in some instances, financial losses can be reclaimed.
Different forms of misconduct that could result in financial advisor negligence include:
• Failing to evaluate and take full account of your individual financial position and needs
• Failing to warn about the risks of the suggested investments
• Financial adviser taking negligent independent advice on behalf of their client
• Financial adviser’s financial conflicting interests
• Failure to disclose receipt of commission or payment as a result of involvement in the financial recommendation or transaction
• Misrepresenting the facts surrounding the investment
Identification and proof of financial advisor negligence is paramount as with all professional negligence claims. Financial advisors have an obligation to deliver a reasonable level of professional skill and care and have a duty of care to you. Upon a breach of such care, you would be in a position to make a claim against the financial advisor in question to recover any losses you may have incurred.
In making a professional negligence claim against any financial advisor, it is also of key importance that the claimant can show they placed reliance on the advice given by the adviser in question. Furthermore, you will have to show that you suffered financial loss as a result of that advice and that the advice was in some way negligent. Just because your investments went down rather than up as you might have hope, does not automatically entitle you to a compensation claim.
If you feel you may be entitled to make a compensation claim following the negligence of your financial advisor, make sure that you appoint a specialist professional negligence solicitor will be able to offer you and advise you whether you have what is likely to be a successful claim for compensation.
Tim Bishop is senior partner of Bonallack and Bishop – solicitors with a team of specialists in suing negligent solicitors and professional negligence litigation in general. If you need expert help with making a claim for compensation against a negligent professional, call them on 01722 422300 or for more information visit their specialist website at http://ww2.professional-negligence-claim.co.uk
