How hard is it to claim against investment advisors?

Jan Samuel

It can be daunting to consider bringing a claim for professional negligence against an investment advisor.


Proving an investment advisor was negligent

How do you prove that it was the mistake of an investment advisor, and not just market fluctuations, that caused you financial loss?

Traditionally, a client wanting to bring a claim against their investment advisor would instruct an expert in the field, to comment upon whether the advisor made a mistake. Perhaps they chose the wrong type of investment for your risk profile, or maybe they simply invested in stocks which were obviously never going to perform well. 

However, there have been cases in recent years that have changed the way in which the courts address this type of matter. There can now be differing hurdles to overcome, depending on whether you are an experienced investor or not. 


Experienced investors bringing negligence claims

The case of O'Hare v Coutts & Co has potentially made it more difficult for experienced investors to bring a case for professional negligence against their financial advisors, or investment advisers, if the investment fails to deliver.

In this case, the judge decided that where an "informed" claimant was able to decide on the level of risk that they were willing to take, the investment advisor could not then be penalised if those risks lead to loss.

The previous test that judges in this type of case had used, was whether or not the defendant investment advisor had provided advice which met the standard of a reasonably skilled professional.

This case will undoubtedly make it more difficult for sophisticated investors to bring claims against their financial advisors, or investment advisors, even if the advice from that investment advisor is wrong. 


How to start your claim against an investment advisor

Samuel Solicitors, based in Devon have a wealth of experience over a number of decades, in dealing with professional negligence claims against investment advisors, financial advisers, and all other types of professional.

Our senior partner Jan Samuel is described by clients as a "formidable litigator" and has been a member of the Professional Negligence Lawyers' Association for many years.

If you have a strong claim against a professional, such as an investment advisor, or financial advisor, we may be able to assist you under the terms of a conditional fee agreement, if your case is very strong. If that is not possible, we have other options for the payment of our legal fees which we would be happy to discuss with you.

We are happy to have an initial discussion with you, on a no obligation basis. 

Contact us today for a discussion about how we can help you with your claim against an investment professional.

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