FINANCIAL ADVISOR - CAN I SUE HIM

[holbreck]

My financial advisor advised me to sell an investment which, in hindsight, was terrible advice. This sale made me a loss of about 33% of the total investment. He is now recommending that I sell another excellent long term investment which has withstood the current recession much better than most.. This I have refused to do. I now realise his motives for his bad advice. Can I take him to the small claims court and win?

[sara3]

what were his motives?

[sara3]

;o)

[David Black]

Ask for a copy of your client file from their compliance officier and see if the advice was properly documented if you genuinely think you were misadvised.

[holbreck]

By making me sell the investment and in turn for him to re-invest that money will make money for him. I do/did not pay him on an hourly basis.

[hc4361]

Did he make it very clear to you that investments may go down, as well as up?

[holbreck]

Yes he did, we all know investments go up and down. The investment I was talking about was sold long before the recession - in 2006. It was in fact rising when he advised me strongly to sell it.

[albaqwerty]

you took his advice, why sue?
If you'd made a packet, couldn't he sue you?

[sara3]

buying and selling investments is a known risky business. I would think he is bullet-proof and you would have probably signed something to that effect.

[R1Geezer]

worth explaining the case to the FSA, if you can demonstrate that you were mislead into selling an investment in order to beneifit the advisor, I'd say there's a chance. But as others have said, you must have thought it was a good idea at the time.

[thedazzlin]

On 20 October 2008, in a landmark case that may have set a precedent for cases in the future, Stan Collymore won more than £1.5 million in damages from his financial advisers, for the poor investment advice he had been given since retiring from professional football in 2001. The judge ruled that Collymore had indeed been given advice that was in breach of statutory obligations.

[thedazzlin]

On 20 October 2008, in a landmark case that may have set a precedent for cases in the future, Stan Collymore won more than £1.5 million in damages from his financial advisers, for the poor investment advice he had been given since retiring from professional football in 2001. The judge ruled that Collymore had indeed been given advice that was in breach of statutory obligations.