Negligence Claims against Financial Advisers

Negligence claims against financial advisers. Financial advisers can be employed by both businesses and individuals as sole traders to provide expert advice regarding financial transactions and to help manage their finances.

Financial advisers owe a duty of care to their clients and unfortunately, they can sometimes breach that duty of care which results in you suffering a loss.

Types of negligence claims against financial advisers

If you have experienced one or more of the following due to the negligence of a financial adviser, you may be entitled to bring a professional negligence claim:

  1. Failure to Understand Client Needs: Not taking the time to fully understand a client’s financial situation, goals, risk tolerance, and investment preferences can lead to unsuitable advice.
  2. Inadequate Research or Due Diligence: Providing advice without conducting thorough research or due diligence on the financial products recommended.
  3. Misrepresentation of Financial Products: Misleading clients about the nature, risks, or potential returns of an investment product.
  4. Lack of Diversification: Advising clients to invest in a manner that does not adequately spread risk across different assets or asset classes.
  5. Failure to Review Client Portfolios: Not regularly reviewing and adjusting the client’s portfolio to reflect changes in the market conditions or the client’s personal circumstances.
  6. Breach of Regulatory Compliance: Not adhering to the regulations set by financial authorities, such as the Financial Conduct Authority (FCA) in the UK, which could include failing to provide clear, fair, and not misleading information to clients.
  7. Failure to Provide Adequate Information: Not providing clients with sufficient information to make informed decisions, including failing to disclose all relevant risks or fees associated with an investment.
  8. Unauthorised Trading: Making transactions on a client’s behalf without their permission or beyond the scope of their consent.
  9. Overcharging Fees: Charging fees that are not agreed upon, not transparent, or not justified by the services provided.
  10. Conflicts of Interest: Not managing or disclosing conflicts of interest that could affect the impartiality of the advice given.
  11. Poor Administration: Errors in handling paperwork or transactions that lead to financial loss or other issues for the client.

How we can help

To make a successful claim, we must prove that the financial adviser has acted negligently and that there is a direct link between the financial adviser’s negligent actions and the loss that you have suffered.

We have a dedicated team of litigators who are vastly experienced in dealing with claims arising from the negligent actions of professionals and their breach of duty of care towards you.

We can assist you by reviewing your potential negligence claim, highlighting the merits and pitfalls of your claim and what options are available to you to progress your claim, and providing you with clear and concise advice throughout.

Funding negligence claims against financial advisers

We understand that you have already suffered significant loss and may feel aggrieved having to spend further money on trying to recover your losses through no fault of your own.

To help make what is undoubtedly an already stressful time for you a little easier, Cohen Cramer can offer flexible funding options ranging from:

  • Hourly rates;
  • Fixed fees for each stage of work;
  • ‘no-win-no-fee’ arrangements (also known as Conditional Fee Agreements); and
  • Deferred fee agreements (i.e. we will defer any charge until the end of your case)

We can discuss the above funding options with you to agree on the best option for you. If you are looking for a no-win-no-fee agreement, this will be considered on a case-by-case basis, and subject to an initial review of the documentation and undertaking a risk assessment of your case; this initial work will usually be done on a fixed fee basis.

Where your matter is of a more complex nature, we may also require a favourable opinion on the prospects of success from a Barrister before we can offer any alternative funding options.

Contact us

If you want to discuss your potential professional negligence claim further, then please do not hesitate to get in touch with a member of our disputes team today either by:

Alternatively, you can add your contact details to the box below and a member of our team will contact you.

Whatever the problem, whatever the profession – we are here to help.