NEGLIGENT FINANCIAL ADVISER COMPENSATION CLAIM
Commercial Lawyers
The work carried out by a professional negligence lawyer involves claiming compensation for negligent advice or for unsatisfactory work carried out by professionally qualified people including fund managers, superannuation trustees, managers & promoters of managed investment schemes, banks, financial institutions, stockbrokers or financial planners & advisers. A solicitors professional negligence claim often involves complex legal issues which, due to the fact that most qualified people are indemnified by a policy of insurance, results in their insurers instructing professional negligence solicitors of the highest calibre to defend any compensation claim that may be intimated against their insured. Fund managers, superannuation trustees, managers & promoters of managed investment schemes, banks, financial institutions, stockbrokers or financial planners & advisers are never going to be a pushover when it comes to legal proceedings for professional negligence. They are usually intelligent, educated and articulate and it’s definitely to your advantage to be represented by an expert lawyer, well versed on dealing with defended professional negligence claims.
SOLICITORS HELPLINE 1800 455 260
^^ back to the topFinancial Advisers
It must be stated from the very beginning that not all professional financial advice that results in monetary loss can be considered to be negligent. The mere fact that an investment recommended by a financial adviser, planner, consultant or stockbroker does not perform as anticipated does not necessarily mean that a profession financial consultant has been negligent in making that recommendation. Disputes of less than $150,000 may be resolved by the Financial Ombudsman Service (FOS) whilst figures in excess of this sum must be dealt with by mediation, negotiation or litigation. The issue of negligence relating to investment advice can be a complex legal matter which requires skilled legal advice from a qualified lawyer.
SOLICITORS HELPLINE 1800 455 260
^^ back to the topNegligence Law
The ordinary law of negligence applies to fund managers, superannuation trustees, managers & promoters of managed investment schemes, banks, financial institutions, stockbrokers or financial planners & advisers. This means that provided the consultant owes you a duty of care which will be in existence in most commercial relationships and you rely on any advice that has been given to your detriment, you will be entitled to claim compensation for direct loss that is reasonably foreseeable if the adviser failed to exercise reasonable skill & care. Conduct that may contribute to a finding of negligence includes failure to :-
- fully consider personal needs & finances
- make a reasonable assessment of the figure for investment
- advise against unsuitable investments
- assess investors attitude to risk
- warn of high risk investment
- advise on potential risk of an investment
- advise on the brokers or advisers contra interest
- take independent advice from another consultant where appropriate
SOLICITORS HELPLINE 1800 455 260
^^ back to the topSecurities and Investments Commission
To practice as a financial adviser, planner or consultant in Australia in common with most other developed countries it is necessary to be registered by the Australian Securities and Investments Commission (ASIC) which will grant an Australian Financial Services Licence (AFSL) to a suitable investment adviser who complies with strict criteria thereby entitling that person to deal in securities or to give advice on investments. There are over 4,000 AFSL holders in Australia represented by over 40,000 fully trained and authorised representatives.
SOLICITORS HELPLINE 1800 455 260
^^ back to the topDuties & Responsibilities
A licensed financial advisor is required by law to be totally honest and upfront in their dealings with the public. They must provide a financial services guide in writing which sets out information about the complaints procedure, how they get paid and what relationships they may have with the companies they recommend for investment. A financial adviser will usually enter into a fiduciary relationship with a client and will be expected to always act in the clients best interests. They must therefore recommend investments that are best for the client rather than investments that are best for then in terms of commissions or bonuses.
SOLICITORS HELPLINE 1800 455 260
^^ back to the topStatutory Provisions
Those who recommend investments are subject to legislation contained in the ASIC Act and the Corporations Act which impose obligations on financial advisers who must :-
- not engage in unconscionable or misleading or deceptive conduct
- not make false or misleading statements that cannot be verified
- provide their services with “due care and skill”
- provide their services efficiently, fairly and honestly
- have a reasonable basis for the advice that they give you
- provide relevant documents including a financial services guide and written advice
SOLICITORS HELPLINE 1800 455 260
^^ back to the topNegotiated Settlement
Our professional negligence lawyers initially attempt to obtain settlement on an agreed basis however, once a formal letter of claim has been received by the potential defendant the matter is usually referred on to professional indemnity insurers who thereafter instruct solicitors to act on their behalf. Some insurers will enter into negotiations, however in the event that there is an intimation that legal proceedings will or are likely to be issued in a court of law, the entire matter will be passed on to solicitors. It should be recognised that insurers often use the same panel solicitors for the bulk of their professional negligence work and as such those solicitors that receive regular professional negligence referrals are often experts with vast experience. It is therefore to your advantage to be similarly represented and to instruct equally qualified professional negligence lawyers to act on your behalf.
SOLICITORS HELPLINE 1800 455 260
^^ back to the topNo Win No Fee
Our commercial lawyers offer experience that is second to none and have detailed knowledge arising out of acting for both claimants and for insurers indemnifying professionally qualified defendants. If you find yourself in the difficult position of having to consider legal action in a court of law to claim damages for professional negligence against a financial advisor we can help. Our litigation solicitors have a firm grounding in commercial law and are able to advise at a very early stage whether or not a proposed compensation claim for damages for monetary loss following receipt of negligent financial advice is likely to succeed. We offer a detailed litigation risk assessment and for those that do have a reasonable claim, with a more than even chance of success we may be able to offer the no win no fee scheme.
If you would like free initial advice from expert professional negligence lawyers on whether or not you have a viable legal claim just call the helpline. we will take full details and advise you in the clearest of terms whether or not we believe that you have a valid claim for compensation and the value of damages likely to be awarded. If after speaking to us you decide to go no further, you will not be charged for any advice.
