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Quick Answer

Can I claim compensation for bad financial advice in the UK?

If you received financial advice from an FCA-regulated adviser or firm and suffered financial loss as a result, you may have a claim for compensation. The Financial Ombudsman Service (FOS) resolved 305,726 complaints in 2024/25 and upheld 34% in consumers' favour. Compensation can be sought through FOS (up to £455,000), FSCS (up to £85,000 if the firm has failed), or direct court proceedings.

Source: FOS Annual Report 2024/25. See also: FCA Conduct of Business Sourcebook (COBS 9 — Suitability), FCA Consumer Duty (2023), Limitation Act 1980.

Bad Financial Advice

Bad Financial Advice Claims — If a Regulated Adviser Lost You Money, You May Be Entitled to Compensation

Every FCA-regulated adviser owes a duty to give suitable advice under COBS 9, the common law duty of care, and (since 2023) the FCA's Consumer Duty. When they breach that duty and you lose money, you can claim. No Win, No Fee.

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Free, no-obligation. You can complain to the Financial Ombudsman Service (financialombudsman.org.uk) or claim from the FSCS (fscs.org.uk) for free without using us.

When does bad financial advice create a legal claim?

Every FCA-regulated financial adviser owes a duty to give advice that is suitable for the specific client. This duty arises from FCA rules (COBS 9 — Suitability), the common law duty of care, and — since 2023 — the FCA's Consumer Duty. When an adviser breaches this duty and you suffer a financial loss, you may be entitled to compensation.

Types of claim we handle under this category

  • Unsuitable pension advice (any type of pension product)
  • Unsuitable investment advice — recommending products too high-risk for your profile
  • Unsuitable life insurance or protection product advice
  • Failure to advise — where an adviser should have warned you of a risk but did not
  • Conflict of interest — where an adviser recommended a product because of undisclosed commission
  • Churning — excessive buying and selling of investments to generate fees
  • Misrepresentation — where you were given false or misleading information about an investment
  • Any situation where an FCA-regulated firm's advice caused you a financial loss

Who pays the compensation

  • Adviser firm & PI insurer — where the firm is still trading. Awards are uncapped.
  • FSCS — up to £85,000 per claim per failed firm.
  • SIPP operator — for due-diligence failures on non-standard assets.
  • Principal firm — where an introducer relied on a regulated firm's permissions.

Don't leave it too late

Standard limitation: 6 years from advice or 3 years from awareness of the loss, whichever is later. As more firms fail and PI cover lapses, your route to compensation can narrow.

The main types of bad-advice claim we handle

Click any to see the specific FCA rules, who is liable and how compensation is calculated.

SIPP Mis-selling

Self-Invested Personal Pensions invested in unsuitable, high-risk assets.

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DB Pension Transfers

Advised to give up a guaranteed final salary pension for a riskier alternative.

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Mini-Bonds & ISAs

High-interest 'bonds' marketed as ISAs that turned out to be unregulated and high-risk.

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UCIS Claims

Pooled investments outside FCA regulation — generally illegal to promote to retail clients.

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Care Home Rooms

'Buy-to-let' care home rooms sold as fractional property — often unauthorised collective investment schemes.

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Overseas Property

Off-plan Caribbean, Cape Verde and European property sold through SIPPs as guaranteed-yield investments.

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Investment Bonds

With-profits, structured and offshore investment bonds sold to risk-averse clients.

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Wealth Management

Discretionary portfolios with excessive risk, concentration, charges or churn.

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APP Fraud & Scams

Bank transfer scams — investment, romance, purchase, impersonation and 'safe account' fraud.

Find out more
Resources

Before You Claim

Three short guides covering the things people ask us first.

Time Limits for Claims

The 6-year rule, the 3-year date-of-knowledge extension and FOS vs FSCS deadlines.

Read the guide

How Compensation Is Calculated

The redress principle, FOS vs FSCS limits, DB transfer methodology, interest and tax.

Read the guide

Evidence for a Claim

The key documents, what each proves, and how to recover your file if you have nothing.

Read the guide

Local specialists near you

Bad advice claims handled remotely UK-wide, with face-to-face meetings available at our Carlisle office.

Carlisle
Cumbria & the North West
Manchester
Greater Manchester & the North West
Leeds
West Yorkshire
Birmingham
West Midlands
London
Greater London
Sheffield
South Yorkshire — BSPS scandal epicentre

Bad Financial Advice — Frequently Asked Questions

What counts as 'bad financial advice'?
Advice is mis-sold when an FCA-regulated adviser recommends a product that is unsuitable for your circumstances, fails to explain the risks, breaches FCA Conduct of Business (COBS) suitability rules, or fails to disclose commissions and conflicts of interest.
Who can I claim against?
Usually the adviser firm and its professional indemnity (PI) insurer. Where the firm has failed, the Financial Services Compensation Scheme (FSCS) pays up to £85,000 per claim. SIPP operators, introducers and product providers can also share liability.
Is there a time limit?
Generally six years from the date of the advice, or three years from when you reasonably became aware (or should have become aware) of the loss — whichever is later. Don't assume an older case is out of time without checking.
What does No Win No Fee mean?
You pay nothing upfront and nothing if your claim fails. A pre-agreed success fee — disclosed in writing in your client care letter before you commit — is deducted from compensation only if your claim succeeds.
Do I have to use a solicitor?
No. You can complain directly to the adviser, the Financial Ombudsman Service or the FSCS for free. Specialist solicitors are typically instructed where claims are complex, contested, or where losses exceed the FSCS £85,000 cap.

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