Negligent Investment Advice - Claims Against Financial Advisers

Claims against financial advisers are increasingly common, particularly in relation to investments, including ISAs, bonds, Unregulated Collective Investment Schemes (“UCIS”) and ‘guaranteed stock market bonds’.

Many people seek advice from a financial adviser (either independent - an ‘IFA’ - or those affiliated with banks and building societies), about their money. They want to know how best to invest, for instance, a cash lump sum from a pension, an inheritance, the proceeds of a house sale or simply what they should do with their life savings.

Unfortunately, financial advisers often recommend risky or unsuitable investment product(s), which cause the investor to either lose capital, interest or income or sometimes all three. A financial adviser owes the investor a duty of care. He must consider the client’s finances and attitude to risk. A financial adviser cannot guarantee that an investment will succeed but he must not recommend an investment negligently. Our professional negligence solicitors have experience and expertise in dealing with negligent claims against financial advisers for mis-sold investments.

Have you been mis-sold an investment product?

There are many reasons why your financial adviser may have been negligent. For instance:

  • the fund into which the investment product was invested was of a higher risk than you were willing to take or than was explained to you;
  • the investment was concentrated into one particular investment fund type (for example, property) which was inappropriate for you;
  • you were sold a UCIS without fulfilling the criteria and/or you were not told of the implications;
  • the risks associated with the investment product were not properly explained to you;
  • the financial adviser failed to conduct a fact find with you ensuring he was aware of your full circumstances and needs and objectives;
  • you were not provided with any suitability letter or similar document confirming why the investment product(s) had been recommended to you;
  • you were sold a guaranteed investment bond which was linked to the stock market and although you have had return of your capital, you have lost years of interest.

There may be other grounds to bring a negligence claim against your financial adviser for selling an inappropriate investment product.

Case study

Mr A received a cash sum from his occupational pension scheme and was a nervous first time investor. He met with a financial adviser, employed by a well known high street bank,  who recommended the client invest all of the lump sum as well as his life savings, into a high risk commercial property fund. Not too long after purchasing the investment, the client lost over half of his savings as well as a significant amount of interest. Mr A claimed that the adviser was negligent, in breach of certain statutory duties and made misrepresentations about the investment. He recovered all his lost capital and interest. The adviser also paid Mr A’s legal costs

Unfortunately, Mr A’s situation is not uncommon. Many people put their life savings or other large sums of money in the hands of a financial adviser and when it goes wrong, they may have a claim against the adviser if the adviser was negligent.

If you feel you have been negligently advised in relation to an investment you were sold, you may be entitled to claim compensation for the losses you have suffered.  Call us today to speak with one of our experts. 

Free Initial Consultation

If you feel you have been given negligent advice in respect of your investment(s), please contact our professional negligence solicitors for an initial consultation now. Our solicitors are available to discuss the circumstances surrounding your investment. Following this initial consultation we can advise you of the next steps we consider are appropriate in your circumstances. We can make a request to the investment provider, adviser and/or broker for information about your investment and the advice given to you. This may show that the advice they gave was insufficient or bad advice which may then enable you to bring a claim for compensation.


There are time limits to bring a professional negligence claim. You have 6 years from the act of negligence or 3 years from the date of knowledge to start court proceedings for a claim for professional negligence. The test for ascertaining the date of knowledge is when a reasonable person ought to have realised that there was a risk that negligence had occurred. There is a long stop date of 15 years from the act of negligence after which a claim may not be brought regardless of the date of knowledge. If you do not bring your claim in time, then your claim will usually be lost forever.

Funding Your Claim

We offer a number of options to fund professional negligence claims including Conditional Fee Agreements and fixed fees.

See If You Can Claim Now

Simply call our specialist professional negligence solicitors on 0330 134 2582 or e-mail us at to discuss whether you have a mis-sold investment claim.

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