When investing your hard-won earnings or savings it is vital that you do so wisely, seeking out advice from qualified and expert professionals that are regulated by the Financial Services Authority. However, when investment advice is negligent, it is vital that you know your legal rights and seek the support and representation of a specialist professional negligence lawyer.
Sale and Repurchase Negligence
In 2012 it was announced that around twenty advisers would face claims over investment advice that was allegedly negligent.
They related to claimed mis-selling of a now liquidated property investment scheme Arck. According to regulation professionals at the time, it was likely that the firms would also be forced out of business as a result of the multi-million pound claims, with the burden of settlement likely to fall on the Financial Services Compensation Scheme. “This will again be a FSCS issue. It will be the adviser community once again left standing there picking up the tab,” commented legal specialist Michael Cotter.
However, it was not only financial advisers who are left facing compensation claims in the fallout of failed investment schemes. The same Arck Sale and Repurchase (SARP) also led to claims being made against Yorkshire Bank, although this was not until 2013.
At the time it was estimated that the claims, being made by more than 300 parties, could be worth as much as £23 million. They sought to prove that the bank had been negligent in failing to keep money safe and segregated from the losses incurred by the Arck SARP scheme.
“We act for just under 350 clients. We believe all have valid causes. Yorkshire Bank represented that they would handle clients’ money in ringfenced segregated accounts, and as of the date of the freezing order the money is unaccounted for,” said the claimants’ professional negligence lawyer.
Professional negligence lawyers in London and Brighton
Financial investment schemes are very complex and require a great deal of research and decoding in order to quantify risk and determine suitability for your needs.
Against this background it is easy to see why so many seek out the advice of a professional in order to guide them through the investment minefield. However, in some cases advice fails to deliver. Where this occurs because of negligence and significant financial loss is suffered as a result, it may be possible to claim compensation.
Financial advisors, banks, and investment professionals have a duty to serve the interests of the client, including the provision of suitable and honest advice. Where things have been mis-sold or mis-handled, those affected may instruct professional negligence lawyers to claim for negligent investment advice.
For expertise and guidance that will bring clarity and direction to your claim for investment advice negligence, contact Healys LLP in London or Brighton today.