The role of a financial adviser is to provide expert advice that assists clients in making informed financial decisions.
You rely on financial advisers to open new bank accounts, take out mortgages and invest in pension funds for the future.
What happens if you’re provided with poor financial advice from a professional?
We understand that mistakes can happen, but if you’ve suffered damages or loss as a result of the actions of your financial adviser, you could be entitled to make a claim of professional negligence.
In this article, the legal team at Wilson Browne explains everything you need to know about making professional negligence claims against financial advisers.
What Is Professional Negligence in Financial Services?
Professional negligence may occur in financial services when a financial adviser you’ve employed to provide expert advice has failed in their responsibilities towards you, their client. If this negligence results in a direct financial loss, you may be within your rights to make a claim for compensation.
There are four distinct criteria that must be met if you are to pursue a claim of professional negligence against a financial adviser. These criteria are:
- The financial adviser had a duty of care towards you
- The financial adviser breached that duty of care
- You suffered damages or financial loss
- Your losses are directly attributable to the negligent actions of the financial adviser.
What Are Financial Advisers Liable For?
As skilled and qualified professionals, we expect a certain standard of care, advice and responsibility on the part of a financial adviser. It’s important to note that genuine mistakes can happen, but when those mistakes are the result of a lack of responsibility or professional care, you may have a case of professional negligence.
Common examples of professional negligence by a financial adviser include:
- Providing poor financial advice that doesn’t meet industry standards
- Providing unsuitable financial options to clients, such as recommending the wrong savings account or pension fund
- Failing to provide a client with the necessary information, rules or regulations surrounding a financial product
- Failing to take into account a client’s personal expectations or financial knowledge
- Providing advice that results in a large loss to the client
How Do I Pursue a Claim of Professional Negligence Against My Financial Adviser?
It’s important to note that trying to sue a financial adviser for compensation should only be done as a last resort. Before taking anyone to court, there’s a specific pre-action protocol that must be followed.
A professional negligence solicitor can help you to understand this in more detail, but you must first address your complaints to the financial adviser. Attempt to resolve the dispute first and, if this fails, you can consider commencing legal proceedings.
Contact Wilson Browne for Expert Legal Advice on Professional Negligence.
Incidents of professional negligence in financial services should always be taken seriously, but it’s important that you seek professional advice from skilled lawyers before pursuing a claim.