Claim Against a Wealth Manager — Portfolio Mis-management and Negligence

Wealth managers and discretionary fund managers have a high duty of care. If your portfolio was placed into unsuitable investments, concentrated in excessive risk, or managed in ways that benefited the manager rather than you, you may have a strong claim for compensation.

Quick Answer: You can claim against a wealth manager or discretionary fund manager (DFM) if they took investment decisions unsuitable for your risk profile or objectives. FCA COBS 9 and the Consumer Duty (July 2023) require suitability, and the FOS upheld 44% of investment advice complaints in 2024/25. Awards go up to £430,000 via FOS. Source: FCA COBS 9; FOS Annual Report 2024/25.

Discretionary vs Advisory Wealth Management

Discretionary management

The manager makes investment decisions on your behalf without needing prior approval for each trade. They must act within agreed risk parameters and in your best interests at all times. Any deviation from your risk profile without your knowledge or consent may constitute a breach.

Advisory management

The manager recommends investments and you approve each trade. Unsuitable recommendations, or a failure to explain risks clearly before you agreed, give rise to a mis-selling claim.

Common Grounds for Wealth Management Claims

Excessive risk — placing a capital-preservation client into high-volatility equities, structured products or alternative assets
Portfolio churning — making excessive trades to generate commission, increasing costs and tax without improving returns
Undisclosed conflicts — earning kickbacks or trail commission from fund managers without disclosure
Concentration risk — holding the bulk of your assets in a single stock, sector or illiquid investment
Unsuitable products — placing retail clients into hedge funds, EIS, VCTs or other complex products without proper assessment
Consumer Duty breaches — failing to demonstrate good client outcomes under FCA rules effective July 2023
Benchmark underperformance — where the mandate required market-level returns and the manager consistently failed to deliver

Firms Commonly Subject to Wealth Management Claims

Claims have been brought successfully against major wealth managers including St. James's Place, Hargreaves Lansdown, Tilney, Brewin Dolphin, Rathbones and numerous boutique discretionary managers. You do not need to identify a specific failure — contact us and we will assess the merits of your case from your statements and mandate.

Compensation Available

Compensation equals the difference between your actual portfolio performance and what a properly managed portfolio would have achieved, calculated on a like-for-like basis. Interest is typically awarded at 8% simple per year on FOS awards. For losses above £430,000, court proceedings allow unlimited recovery.

Frequently Asked Questions

My wealth manager always showed me positive reviews — can I still claim?

Yes. Quarterly valuations and client communications are designed to maintain the relationship. The question is whether your portfolio was actually managed in line with your agreed mandate and risk profile — not whether the reports looked positive.

What if I signed off on the investment mandate?

Signing an investment mandate does not waive your right to complain if the manager later acted outside that mandate or recommended unsuitable changes to it. Each individual decision must be assessed on its merits.

How much could I claim?

Compensation equals the difference between your actual portfolio performance and what a properly managed portfolio would have achieved, calculated on a like-for-like basis. The FOS also typically awards 8% simple interest per year on the capital loss. Free estimate on request.

Can I claim against a DFM that never lost me money?

Unlikely. A claim needs a demonstrable loss compared with a suitable portfolio benchmark — the FOS applies a 'but-for' calculation. Poor performance alone does not create a claim unless unsuitability is proven.

Talk to us

Free assessment on 01228 272 395 or start your claim online. Related: wealth management claims, adviser negligence.