I recently consulted a financial advisor who was advertising on the local TV networks in my area. He was offering cheap consultations and promising big rewards. He treated me badly the whole way through our meeting. I don't think he really listened to what I was saying and he gave me advice that has resulted in me losing a lot of money. Have I just made a bad decision or do I have a claim against this person?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Neha Sharma, Hillsdale 2036 NSW
- Many things can be considered as poor or negligent financial advice and you should speak to a lawyer for advice on your particular case.
- Some examples of things for which you may sue your financial adviser include:
- suggesting and encouraging risky investment proposals;
- not adequately assessing your circumstances;
- not advising you whether an investment is financially viable;
- not analysing the market for trends;
- encouraging investments that have high commission rates;
- not explaining to you the effect of taking loans and the interest payable on loans; or
- advising poor investment strategy.
- It sounds like your financial advisor may have at least inadequately assessed your circumstances if you feel that he didn't listen to you at all. He may also have encouraged risky investments. Without more information about your conversations with him it is difficult to say. You should discuss the strength of your case with a lawyer who has experience in professional negligence claims.