Our specialist team of litigators regularly act on behalf of individuals and businesses against professionals in cases involving negligent financial advice. The scope of who could be considered a finance professional or financial advisor is wide and includes but is not limited to accountants, auditors, IFA’s, brokers, actuaries, pension advisers and trustees.
Clients place considerable trust in finance professionals and the consequences of any potential negligence can be particularly costly and damaging. Finance professionals are expected to act with reasonable skill and care when acting for clients and are judged by the standard of a reasonably competent finance professional specialising in the area of finance which they hold themselves out as having expertise in.
As finance professionals are often heavily regulated it is important to also consider their conduct and duty of care against the relevant regulatory and statutory framework. Due to the relationship of utmost trust and good faith expected from financial professionals, claims for breach of fiduciary duty may also arise as may claims for misrepresentation should financial products or investments be “mis-sold” to clients.
We have particular expertise in dealing with cases against finance professionals where there are allegations of fraud and also in claims against professional trustees.
Please read our Professional Negligence FAQ’s for the relevant test to be applied when considering whether you have a potential negligence claim. In summary, to be successful it must be proved that (1) you were owed a duty of care by the finance professional, (2) they breached their duty of care and (3) the breach caused a loss.
Please see below some examples of negligence relating to finance professionals:
- Negligent tax advice
- Failing to meet tax deadlines
- Errors in accounts or tax returns
- Failing to submit VAT returns
- Negligent advice on VAT recoverability
- Failing to detect fraud
- Negligent valuation of company shares
- Failing to conduct due diligence
- Failing to submit tax returns and other paperwork in a timely manner to HMRC
Financial Advisors and Managers/Brokers
- Negligent financial advice
- Negligent pension advice
- Negligent investment advice
- Failing to advise on the risks of an investment
- Recommending unsuitable investment vehicles
- Recommending investments which do not match clients’ risk profile
- Negligent advice relating to tax avoidance schemes
- Failing to assess clients’ financial circumstances
Finance professionals will usually have the benefit of professional indemnity insurance so that, assuming liability is established, claimants will be able to recover some or all of their loss and the majority of their legal costs of bringing the claim. In any event, we provide our clients with clear advice about costs and the various ways of funding a professional negligence claim, alongside strategic and commercial advice at every step of the case.
Partner and Head of Department
Fiona Simpson (Français)