Financial Advisor Negligence

Just because your investment may have lost value does not mean your financial adviser is to blame. More importantly we need to assess if your financial adviser has followed the financial regulators code of practice and in particular has the adviser obtained sufficient information about your financial circumstances to provide you with the correct financial product.

The standard of the advice offered by your adviser should be that of a reasonably competent and diligent professional adviser. Your adviser will need to have made detailed enquiries about your current and prospective personal circumstances and should have considered your attitude to risk which would have entailed the financial adviser explaining in detail about the proposed investment. The adviser should also explain that the value of investments can fluctuate and there may be a risk that the value of your investment may fall. You should also have been given product particulars including a document detailing fees and charges and their effect over the longer term.

There are numerous grounds which can result in a successful claim against a financial adviser including :-

  • Was The Financial Product Suitable For You?

Your financial adviser should have made sure that this investment was suitable for you after consideration of your financial circumstances at the time and your attitude to risk. Listed below are some of the reasons why the investment may not have been suitable for you which may indicate professional negligence :-

  • The financial adviser may have told you the investment was guaranteed to increase in value and make a good return.
  • The financial adviser did not discuss other more suitable options for investment with you.
  • The financial adviser didn’t explain how your money would be invested and explain the risks involved.
  • The financial adviser failed to explain that performance depended on the stock market.
  • The financial adviser failed to check you were comfortable with the risks of a stock market investment.
  • The information which persuaded you to invest was misleading.

2. Failure to follow The Regulators Code of Practice

We have listed some of the reasons why the investment may not have followed the financial regulators rules:-

  • The financial adviser didn’t explain any fees and charges and how they affect the return you get on your investment.
  • The financial adviser took negligent advice from another person on behalf of his client.
  • The financial adviser failed to provide a document detailing fees and charges.
  • The financial adviser didn’t complete a fact-find.
  • The financial adviser advised you take out unnecessary insurance policies to generate commission

If you have been a victim of poor financial advice please call us on 0333 577 5677 or get in touch online.

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I contacted David Mackenzie in connection with an inheritance dispute. He dealt with my claim on a no win no fee basis and from the outset his advice and guidance was excellent. I was kept well informed throughout and he achieved an excellent settlement for me when otherwise I could have ended up with nothing but for his help. It was a difficult case and the outcome could not have been better. I was very pleased with everything and I would highly recommend David and his team to anybody who is involved in a legal dispute.

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