Financial Planning

Negligent Financial Planners: Signs You’re Being Taken Advantage of

Have you ever wondered if your financial planner is behaving in your best interests? If you have, then you may already have some legitimate reasons to be concerned. Financial planners have a duty of care to their clients and you should be able to assume that your finances are being properly managed by an expert.

Read on to learn how to identify negligent financial planners.

What Is Financial Negligence?

Financial negligence occurs when a financial advisor fails to provide an adequate duty of care to their client and works below the standard that is required of them leading to serious financial implications for the client. Common consequences include loss of financial assets due to miss-sold mortgages, equity release and poor investment choices.

These consequences can impact your current lifestyle and prospects for retirement, which is why it is important to take legal action against negligent financial planners. A financial planning compensation lawyer can help you assess if you have a valid reason to make a compensation claim. Successful financial negligence claims can help lift the burden of your losses.

Signs of Negligent Financial Planners

It is not easy to spot warnings signs that you are being taken advantage of, especially if you are not very knowledgeable when it comes to finance matters. However, there are certain telltale signs that negligent financial planners exhibit.

Your financial planner tends to be very vague or glosses over details

Financial planners should provide you with the correct documentation that corresponds with the financial advice they have given. They are also required, by law, to provide a Statement of Advice (SOA) which explains their financial decision making to the client in an understandable manner. If you find your financial advisor often leaves you feeling confused or unsure of what you are committing to, you should consult with a financial planning compensation lawyer.

You are often rushed into decisions by your financial advisor

Being pressured to sign documents urgently or under pressure can be a sign of negligent financial planners. If your financial planner leads you into hasty or risky investments without giving you an adequate amount of time to consider their decisions, you are not being treated appropriately. Financial planners should make sure you are aware of every decision you are making with your finances and have the option to read over and ask questions about any documentation you need to sign. No matter how “urgent” or “critical” a decision may be, make sure your financial planner is giving you a reasonable time to understand and consider the commitments you are making.

Your financial planner claims they have made the same investments

A major warning sign of negligent financial planners is when you are being told to make investments based on your financial advisor’s investment experience. Often, this is just a ploy to get you to immediately follow suit, but remember, your financial planner should be making decisions based on your circumstances, not theirs.

If you are feeling concerned about your financial planner’s actions, you must take action immediately as the consequences of poor financial advice can last a lifetime.

Financial Negligence Claims

Unfortunately, even if you are able to notice these warning signs, you may not be able to act quickly enough to avoid suffering financial repercussions due to negligence. Financial negligence claims are the best way to make sure you are appropriately compensated for your losses. To make a compensation claim you need to consult with a financial planning compensation lawyer. They will be able to decide what is your best course of action to make sure your case is successful. If you do make a successful claim, you will likely be restored to your financial position before the financial negligence occurred.


What Is Required For Financial Negligence Claims?

Financial negligence claims involve a number of factors, which is why it is best to leave it to your financial planning compensation lawyer to make sure you meet the criteria. Generally, you will need to prove that:

  • You were owed a duty of care;
  • Your financial planner breached this duty of care; and
  • You suffered a significant financial loss as a result of their negligence.

Certain time restrictions will also apply to when you can make your financial negligence claim, so make sure you are within the 6 year time period. Extensions are only granted in extreme circumstances so make sure you do not delay taking legal action.

If you are seeking more information about financial planning compensation, contact Schreuders today for a free consultation.

How to use the Financial Advisers Register?
How to use the Financial Advisers Register?
Major Banks Compensation to their Clients for Negligent Financial Advice
Major Banks Compensation to their Clients for Negligent Financial Advice
5 Signs Your Financial Advisor Isn’t Right For You
5 Signs Your Financial Advisor Isn’t Right For You