Savings are what we rely on. They represent the tangible reward for all our hard work and prudence and they are also there as a way of planning for the future, providing for our families and offering a safety net in the event of misfortune or hardship.
As such, when we seek out professional advice regarding the best way to invest and capitalise on our savings, we expect, at the very least, competent and reliable advice, in the event that we do not receive this and financial loss is incurred, it may be possible to make a claim for negligent financial advice .
Loss and negligence
The fact of loss alone is not enough for a claim for negligent financial advice to succeed – nor, indeed is the fact of negligence. For a claim to have any hope of success, a claimant’s professional negligence lawyer must be able to prove both of these things.
Grounds for liability can be found in statute, common law or both.
A number of pieces of legislation are important in this regard, including the Financial Services and Markets Act 2000, section 150 of which states that certain actions may provide grounds for negligence claims.
Furthermore, the Conduct of Business (COB) Sourcebook of the Financial Services Authority (FSA) provides guidance on correct practice in the area of advising and selling certain financial products. Included is the stipulation that advisors must take reasonable steps to know their customers and provide them with advice that is suitable to their particular circumstances.
One important aspect of this is ensuring that the clients of financial advisers are aware and informed of all the risks involved in taking a particular course of action – however, the scope of this and other obligations may depend on the circumstances and context of the client-advisor relationship.
Of course, in situations where clients are investing entire sums or very large sums of life savings, advisors have to pay particular and prudent attention to the matter of risk. After all, in this situation sound investment is a crucial matter of livelihood.
Claims for negligent financial advice
The professional negligence partners at Healys LLP provide clear advice and guidance for those considering a claim for negligent financial advice, whether it was provided by an independent financial advisor (IFA), accountant or other professional.
This area of the law can be complex and challenging, but with the expertise and experience of our partners in Brighton and London, you can rest assured of a first-class service that will skilfully use the law to promote your interests. Call our offices today, on 020 7822 4106 or click through to our people pages to find out more about our individual partners.