Financial Advisor Negligence

If you've relied on financial advice and it's led you astray, you may be entitled to compensation for your economic losses. By law, financial advisors, brokers and financial planners are required to exercise proper care and skill when providing services to their clients. If they don't and you get hurt, we can help.

Negligent or fraudulent advice can cause you significant financial hardship and devastating loss. Shine Lawyers' team of Professional Negligence lawyers are equipped with the legal skill and experience to hold financial planners to account.

Negligent financial advice

It is important to note that not all advice that leads to financial loss will be negligent. Much depends on the particular circumstances of your case. Common behaviours that may give rise to negligence include:

  • Giving financial advice without knowledge of personal circumstances
  • Recommending unreasonably risky investments
  • Improper monitoring of chosen investments
  • Failing to advise on the risks associated with investment decisions

Financial advisor negligence claims

To have a successful claim for negligent financial advice, you must be able to show:

  1. Your financial planner owed you a duty to exercise reasonable care and skill when providing advice;
  2. Your financial advisor failed to comply with accepted standard of practice; and
  3. As a result of your advisor's negligence, you suffered economic loss.

We can help

If you believe advice from your financial advisor, broker or financial planner has caused you loss, it is best to seek legal advice as soon as possible. Shine's team of expert lawyers can provide an obligation-free consultation to assess the viability of your case and advise you on the best way to move forward. Get in touch today to see how we can right your wrong, and get you the results you deserve.

Recent Shine Lawyers professional and financial negligence cases

Wickham Securities Class Action

IOOF investigation launched

Qantas/TAA employees may be entitled to compensation for lost super

Commonwealth Superannuation Scheme (CSS) compensation claims

National Australia Bank (NAB) Investigation

Macquarie Private Wealth action

Royal Bank of Scotland (RBS) class action

ANZ class action

CBA & Financial Wisdom action

Financial Technology Securities (FTS)

Related services

Our offer to you

  • Obligation-free consultation to assess your case confidentially

  • Claim assessment process where we will explain all of the options available to you

  • We can come to you - if you can't make it into the office we're more than happy to come to you

  • No Win No Fee arrangement

Common questions about Financial Advisor Negligence

If you think you’ve received incorrect or unsuitable financial advice and have suffered loss, help is available.

You may be able to make a claim if your financial advisor recommended the following:
  • Margin loans – Where you have been advised to take out a margin loan despite it being an unsuitable investment for you.

  • Options, derivatives and other speculative investments – Where an investment strategy was recommended to you despite it being inappropriate to your circumstances and you being unfamiliar with the financial products involved.

  • Capitalising interest on margin loans – Where you have been advised not to repay interest on a margin loan and then as a result couldn’t afford the monthly interest payments.

  • Agriculture business investments – Where you have been advised to invest in agricultural business investments so you could get an up-front tax deduction despite it being unlikely you would receive a return on your investment. As a result, you would have suffered significant debts.

  • Investing in shares and managed funds that fail – Where you were advised to invest in company shares and managed funds that have failed because the underlying product was flawed and valueless.

When looking for legal advice ask for a legal representative who can explain your claim in a simple way so you understand exactly what you could be compensated for.
To make a successful claim for negligence against a financial advisor, your legal team will have to prove:
  • That your financial adviser owed you a duty of care
  • That the financial advisor’s actions or advice was not in line with advice from other similar advisors
  • That the financial advisor’s action or advice caused you to suffer financial loss
Most financial advisors are required by law to have Professional Indemnity Insurance (PII), so if your claim is successful it’s the insurance company that pays.

Our job is to find out who the insurance company is and put your claim together in the best possible way. This means you can get the best outcome while having the time to focus on restoring your health.
If your claim is successful, the compensation you are paid should return your financial position to what it was before you financial advisor let you down.

The compensation could include any profits you lost and any expenses you were hit with while trying to fix the negligence.
The amount you will be able to claim will depend on the particular facts of your situation.
Once we have put together all of the evidence we should be able to give you a better idea of what to expect.
Every case is different but we’ll finalise your claim as soon as possible.
Most claims will be finalised from two years from when you first contact a lawyer.
The time limits for making a claim against a financial advisor can vary.

Generally, you have six years from when you first engaged the advisor or six years from when your loss occurred.
Shine Lawyers work on a No win no fee basis so you’ll only pay our fee if you win your case at the end of the claim. We are open and honest about what we charge because the last thing you want to stress about is money.

The amount of legal costs at the end will depend on the amount of work required to resolve your claim.
This is all recorded on an ongoing basis and you can ask for an update on how things are looking at any time.
Where you are located isn't necessarily a barrier when it comes to obtaining the services of a lawyer. We're experts when it comes to financial advisor negligence related claims and we can help you get the compensation you deserve.

It doesn't matter if you are located close or far away from a Shine Lawyers office - we will always provide the same, expert advice and manage your claim with the same level of quality and commitment.

Our compensation experts are in the following locations:

Victoria

New South Wales

Queensland

Western Australia
Shine Lawyers are financial negligence lawyers that can help you recover the compensation you need following losses you have sustained. Click on the link below for more information about how Shine Lawyers can help you.

Why you should choose Shine Lawyers to handle your financial negligence claim
Hear from some of our clients
History of Shine Lawyers
The Shine Lawyers team

Shine Lawyers has been involved in a number of financial advisor negligence cases that have been covered by mainstream media.

These cases include:

National Australia Bank (NAB) Investigation
Macquarie Private Wealth action
RBS class action
ANZ class action
CBA & Financial Wisdom action
Wickham Securities action
Financial Technology Securities (FTS)
Dan Bowl Tax Minimisation Scheme Group Action

Read about cases like yours

Macquarie Private Wealth Compensation Program

Macquarie Private Wealth Compensation Program

Shine is acting as an independent legal adviser for Macquarie clients affected by inappropriate financial advice. The Macquarie Private Wealth Compensation Program is a program of review and remediation for customers who received financial advice from Macquarie Private Wealth (Macquarie) since 1 March 2004.

Read more
Case study: Recovering a $750,000 CGT bill

Case study: Recovering a $750,000 CGT bill

Shine has assisted a small business owner who incurred a $750,000 Capital Gains Tax Liability after being given inappropriate advice from an accountant. In 2005 and nearing retirement age, our client retained the services of an accountant to provide taxation and superannuation advice on the sale of her business. After consultation with our client, the [...]

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Case Study: Financial Adviser Negligence Claim

We are assisting a woman who was forced to sell the $4 million share portfolio she had inherited from her uncle after being given inappropriate advice from a financial adviser. In 2008, following the death of her father and the subsequent inheritance she received, our client sought the assistance of a financial adviser. Apart from [...]

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Case Study: Financial Adviser Negligence Claim

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