Understanding Your Rights When Filing Claims Against Financial Advisers

By Author: Nisha Chauhan
Total Articles: 4
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When you turn to a financial adviser, you expect them to protect your investments and help you grow your wealth. But sometimes, things don’t go as planned. If your financial adviser gives you bad advice that leads to losses, it's important to know your rights and how to get compensation. Here’s a guide to help you understand the process of filing claims against financial advisers in the UK.

Recognising When You Have a Claim
The first thing you need to do is figure out if you have a valid claim. Here are some common reasons why you might:

Negligence: This happens when the adviser doesn't do their job properly, falling short of the expected standards.
Mis-selling: This is when the adviser recommends financial products that aren't suitable for your financial situation or needs.
Breach of Duty: This occurs if the adviser doesn't act in your best interests or fails to disclose any conflicts of interest.
To support your claim, gather all relevant documents. This includes emails, written advice, financial profiles, and any agreements you signed.

Understanding the Legal Framework
In ...
... the UK, financial advisers are regulated by the Financial Conduct Authority (FCA). The FCA makes sure advisers follow strict professional standards. If your adviser is registered with the FCA, they have to handle complaints in a specific way. Knowing this gives you a solid foundation for your claim.

Making a Formal Complaint
Before you take legal action, you should file a formal complaint with the financial advisory firm. This lets them try to resolve the issue internally. Make your complaint clear and detailed, explaining how the adviser failed and how it affected you financially.

Firms usually have eight weeks to resolve complaints. They should give you a final response letter that explains their decision and what, if anything, they will do to fix the problem.

Taking Your Complaint Further
If you’re not happy with the firm’s response or if they don’t respond in time, you can take your complaint to the Financial Ombudsman Service (FOS). The FOS is an independent body that helps resolve disputes between consumers and financial businesses. Their service is free.

You need to take your complaint to the FOS within six months of receiving the final response letter from the advisory firm. The FOS will review your case and might ask for more documents or statements. They aim to resolve cases within six months, but complex ones might take longer.

Potential Outcomes
The outcome of your complaint can vary. If the FOS rules in your favor, they can order the adviser to:

Pay compensation for any financial losses.
Refund any fees you paid.
Make changes to your financial products to better suit your needs.
Protecting Yourself in the Future
After dealing with a claim, you’ll want to avoid future issues. Here are some steps you can take:

Research Advisers Thoroughly: Check their FCA registration and look for any past disciplinary actions.
Communicate Clearly: Make sure you and your adviser are on the same page about your financial goals and risk tolerance.
Regular Reviews: Regularly review your investments and the advice you receive.
Conclusion
Filing a Learn your rights and steps for filing claims against a financial adviser in the UK. Understand negligence, mis-selling, and breach of duty. Know the process of making complaints, involving the Financial Ombudsman, and protecting yourself in the future.
can be intimidating, but understanding your rights makes it easier. The regulations are there to protect you and ensure your financial interests are safeguarded. If you think your adviser has failed in their duties, there are clear steps you can take to seek compensation and resolve the situation.