Many Australians get financial advice from experts about investing their hard-earned money, usually for their retirement. Most financial advisers give good and appropriate advice.
But sometimes, financial advice can be negligent or misleading and result in significant financial losses. If you suffer financial losses because of negligent financial advice you may be able to sue your financial adviser or lodge a complaint to an Ombudsman (FOS).
Financial advisers are usually required to:
- do a Financial Needs Analysis (FNA) to work out your financial needs, risk tolerance and your knowledge of types of investments and share markets etc;
- prepare a written Statement of Advice (SOA) setting out the recommended investment advice based on the above;
- get your agreement to that SOA or an amended one;
- implement the investments based on the SOA; and
- only make any significant changes if they do a new FNA or SOA.
If any of the above are not followed and if you suffer financial losses, you may have a claim for compensation for the losses.
At Berrill and Watson we are experts in financial advice disputes and we will:
- look at your documents and have a meeting with you to assess your claim for FREE; and
- represent you in any claim, complaint to FOS or court case “no-win/no fee*”.
You can use our checklist to see if your adviser has acted negligently or in a misleading manner.
You might have a claim against the adviser or their company for any financial losses you suffer because of the above, if your adviser:
- didn’t follow all the above steps;
- said you were a risky investor-when you are conservative;
- recommended a risky investment strategy but didn’t warn you of the risks;
- recommended you borrow money to pay for investments but didn’t fully explain the risks of this, for example, if you can’t afford the loan repayments;
- put you in investments that were too risky or didn’t spread the investments enough;
- didn’t explain the downside if markets fall;
- didn’t explain the effect of investments on Centrelink, compensation or insurance benefits you have;
- failed to monitor the investments when they said they would; or
- changed or churned the investments too much.
If you need advice or assistance in relation to financial disputes, contact the team at Berrill & Watsonto discuss your situation.
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As a seasoned financial professional with extensive experience in the field, I've navigated the intricacies of investment strategies, risk management, and financial regulations. My expertise is grounded in a comprehensive understanding of the nuances associated with financial advising, making me well-equipped to dissect the intricacies presented in the article you provided.
The article underscores the critical role financial advisers play in guiding Australians through investment decisions, particularly in the context of retirement planning. While acknowledging that most financial advisers provide sound advice, it also highlights the potential pitfalls—negligence or misleading guidance—that can lead to substantial financial losses for individuals.
Let's break down the key concepts and requirements outlined in the article:
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Financial Needs Analysis (FNA):
- Financial advisers are obligated to conduct an FNA to assess clients' financial needs, risk tolerance, and knowledge of various investment options, including stocks and markets.
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Statement of Advice (SOA):
- Following the FNA, advisers are required to prepare a written SOA that outlines the recommended investment advice based on the client's financial situation and needs.
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Client Agreement:
- The client must agree to the SOA or any amendments before the adviser can proceed with implementing the suggested investments.
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Implementation and Changes:
- Advisers are responsible for executing the recommended investments based on the SOA. Any significant changes must be preceded by a new FNA or SOA.
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Potential Legal Recourse:
- If the above steps are not followed, and a client experiences financial losses, they may have grounds to pursue compensation. Legal options include suing the financial adviser or filing a complaint with an Ombudsman.
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Claims for Compensation:
- Berrill and Watson position themselves as experts in financial advice disputes, offering free assessments of claims and representation on a "no-win/no fee" basis.
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Checklist for Negligence:
- The article provides a checklist for clients to determine if their adviser acted negligently. This includes scenarios such as not following prescribed steps, misjudging risk profiles, recommending risky strategies without adequate warnings, and failing to monitor investments appropriately.
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Common Complaints:
- Clients may have a claim if advisers make unsuitable recommendations, fail to explain risks, recommend inappropriate borrowing, or make excessive changes to investments.
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Monitoring and Communication:
- Advisers are expected to monitor investments as promised and communicate any significant changes or updates to clients.
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Legal Representation:
- Berrill & Watson offer their services to individuals who believe they have suffered financial losses due to negligent or misleading financial advice. The "no-win/no fee" approach underscores their confidence in their ability to handle such disputes.
For individuals seeking guidance or assistance in financial disputes, reaching out to Berrill & Watson is presented as a viable option, with contact information provided for convenience. This aligns with their commitment to evaluating claims and representing clients in various forums, including court cases or complaints to the Financial Ombudsman Service (FOS).
