My IFA ' Could I Start A Professional Negligence Claim?

Professional negligence solicitors are being used now more than ever and people are using professional services to try and deal with their money.

However much your savings, you may have turned to a financial advisor for advice. Have you subsequently lost money because the investment fell to a lower value? Finance is a specialist area.

Within this relationship of loyalty and confidence, the advisor needs to comply with what are known as 'fiduciary or contractual' duties. The majority of negligence cases against financial advisors are due to a breach of these responsibilities. The regulated responsibilities include non-disclosure, avoiding conflicts of interest, not to take secret profit and no unfair enrichment.

As you would think, a financial advisor has legal responsibilities to use reasonable care and skill when dealing with your money. If a breach has occurred, and he or she is found to be liable, you may be able to claim compensation for damages.

However, many such claims taken up by professional negligence solicitors may extend to more than a straightforward case of negligence.

Ask yourself: 'did I place heavy reliance on my advisor's advice? If the investment resulted in loss, can you really claim compensation? Well, you might have difficulty, if you simply took advice but placed no great reliance on this.

After all, you cannot go suing your advisor for liability because of economic fluctuations that he could not have foreseen. In the end it boils down to his ability and skill. Do you think this was questionable? Do you feel he lacked the care that a reasonably competent professional financial advisor should have demonstrated? Should you make a professional negligence claim against them?

Negligent conduct may involve:

- failure to assess the client's requirements and current financial situation.

- failure to establish whether the client is able to afford the investment.

- advising investment in financial products unsuited to the client's needs.

- failure to warn of any risks about the proposed investments.

- a financial adviser's conflicting interests in the financial sector.

- a financial adviser accepting negligent independent advice on behalf of the client.

If you think you have a valid professional negligence claim for compensation, consult an experienced and specialist solicitor.


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Bonallack & Bishop are specialists in providing professional negligence claim advice. For help from Professional Negligence Solicitors, contact them today. Senior Partner Tim Bishop is responsible for all major strategic decisions at the firm, which he has grown by 1000% in 13 years. Tim sees himself as a businessman who owns a law firm.