Can I sue my financial advisor for negligence?

Sue Your Investment Advisor for Negligence Generally, investors can sue their financial advisors over negligence through arbitration or civil lawsuits. Even if there was no harmful intent associated with your advisor’s negligence, you may still be entitled to recover your losses.

What to do if you have a claim against a financial adviser?

If you feel you have a claim against your financial adviser, it is important you seek expert legal advice from an experienced negligence solicitor. It is important that solicitor is familiar with both claims in negligence and the financial product you are complaining about.

Can a financial advisor be liable for negligence?

A financial advisor also has a fiduciary relationship of trust and confidence and may be liable to pay compensation for breach. Compensation claims for professional negligence against a financial advisers often extend well beyond the bounds of simple negligence.

Can a person Sue a registered investment advisor?

Yes, you can sue your financial advisor. Registered investment advisors operate under a number of securities laws and financial industry rules and regulations.

Can a financial advisor be sued for mismanagement?

The financial advisory industry is highly regulated and all investors and advisory clients have certain rights which must be upheld. If you feel a violation or mismanagement has occurred, first check to be sure that you have a leg to stand on – simply losing money on an investment is not grounds alone for a claim.

When to file a complaint against a financial advisor?

You should file a complaint only if you believe you’ve been defrauded—simply losing money isn’t enough. (See also: Understanding Dishonest Broker Tactics .) According to the Financial Industry Regulatory Authority (FINRA), the most common complaints against brokers and advisors are misrepresentation and unsuitability:

Can you sue a financial advisor for negligence?

To prove fraud or negligence, investors should work with an experienced attorney who can help them carefully assemble all of the documents, records, and evidence together into a compelling, persuasive legal case. In many cases, investors are not technically eligible to file a lawsuit against their stockbroker or financial advisor.

Why are there so many claims against financial advisers?

Failing to ensure that a client can afford the financial product or investment. Claims against financial advisers have been increasing in recent years as a consequence of poor advice and administrative errors. We regularly see the following common issues where financial advisers have acted negligently:

What to do if you lose money with a financial advisor?

Simply losing money on an investment is not grounds alone for a claim. If you feel like you have been legitimately wronged by a broker or advisor, file a complaint with FINRA. 2  If your advisor has a professional certification after their name, you can also notify the credentialing body.