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Professional Negligence Claims Against Financial Advisers
We provide specialist legal advice to individuals and businesses who have suffered financial loss
as a result of negligent or unsuitable advice from a financial adviser.
Claims Against Financial Advisers
When a financial adviser recommends a product or investment strategy, they take on a duty to ensure that advice is suitable for your individual circumstances, risk profile, and financial objectives. Where the advice is negligent or unsuitable and you suffer financial loss as a result, you may have a claim.
Freeman Harris acts for individuals and businesses bringing professional negligence claims against independent financial advisers (IFAs), wealth managers, and other regulated financial services professionals. Our team is led by Avi Gordon, a Legal 500-recognised Senior Solicitor and member of the Professional Negligence Lawyers Association.
Common grounds for claims against financial advisers
- Recommending an unsuitable pension transfer, including defined benefit to defined contribution transfers
- Recommending high-risk or illiquid investments without properly disclosing the risks
- Failing to diversify a portfolio in accordance with your stated risk profile
- Failure to recommend more suitable products or arrangements available at the time
- Negligent advice in connection with life insurance, income protection, or business protection products
- Failure to advise on the tax implications of an investment or withdrawal strategy
FCA regulation and the FSCS
Financial advisers regulated by the Financial Conduct Authority (FCA) are required to give advice that is suitable for the individual client. Where an adviser has breached FCA conduct rules, the Financial Services Compensation Scheme (FSCS) may provide redress up to defined limits if the firm is no longer trading.
Where the firm remains solvent and trading, a professional negligence claim against the adviser or their employer is the appropriate route. We advise clients on whether to pursue a negligence claim, an FCA complaint, or both, depending on the circumstances of the case.
The claims process
Claims against financial advisers may be subject to the Professional Negligence Pre-Action Protocol. We assess the appropriate protocol at the outset and manage the process on your behalf. Many claims are capable of settlement through negotiation with the adviser’s professional indemnity insurer before proceedings are issued.
The primary limitation period is three years from the date you knew or should have known of the negligence and the resulting loss. In cases involving long-running investment strategies, the date of knowledge can be a contested issue and we assess it at the initial review stage.
Contact us
If you believe a financial adviser has given you negligent advice, contact us for an initial review. We offer a staged approach to assessing prospects, limitation, and the likely measure of recoverable loss.
Professional Negligence Claims Against Financial Advisers Contents
Professional Negligence Team
Avi Gordon
Senior SolicitorAvi has over a decade’s experience handling professional negligence disputes, including claims involving financial advisers and other professional advisers. He advises clients on complex matters arising from negligent financial advice, unsuitable investments and significant financial losses.Isabel Fisher
SolicitorIsabel supports clients with claims against financial advisers, assisting with case preparation, legal research and correspondence. She takes a thorough approach to reviewing the circumstances of each claim and helping clients understand their legal options.
Professional Negligence Fees
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Fees
Professional Negligence Fees
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Claims Against Financial Advisers FAQs
- My IFA recommended a pension transfer that has resulted in significant losses. Can I claim?
Defined benefit pension transfer claims are a well-established area of financial adviser negligence. Where your adviser failed to properly assess whether a transfer was suitable, failed to explain the value of the guaranteed benefits you were giving up, or placed your funds into products that did not match your risk profile, you may have a claim. The regulator has published detailed guidance on the standards expected of advisers in this area.
- Is there a time limit for bringing a claim against a financial adviser?
The primary limitation period is three years from the date of knowledge of the loss and its cause. In some cases, particularly where investment losses accumulate over time, identifying the date of knowledge requires careful analysis. We assess this as part of the initial review.
- Can I claim against a financial adviser who has since retired, or whose firm has closed?
Regulated advisers are required to maintain professional indemnity insurance, including run-off cover following retirement or the closure of a firm. If the firm has been declared in default, the FSCS may provide compensation up to the relevant limit. We advise on all available routes of recovery and which is the most appropriate in your circumstances.
Contact our Professional Negligence Team
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