Financial Adviser Negligence Claims — Can I Sue My Financial Adviser?

If your financial adviser gave you unsuitable, negligent or dishonest advice that caused you financial loss, you may be able to claim substantial compensation.

Quick Answer: A financial adviser is negligent when they breach the FCA's duty of suitability (COBS 9) and cause loss — for example, recommending a high-risk SIPP investment to a cautious retiree. The FOS upheld 44% of investment advice complaints in 2024/25 and can award up to £430,000. Court claims run for 6 years from breach or 3 from date of knowledge. Source: FCA COBS 9; Limitation Act 1980.

What Is Financial Adviser Negligence?

Financial advisers are regulated by the Financial Conduct Authority (FCA) and must comply with its Conduct of Business rules (COBS). Negligence occurs when an adviser fails to meet the standard of care expected of a reasonably competent adviser in the same circumstances. This includes:

Recommending investments that were unsuitable for your attitude to risk, financial situation or objectives
Failing to explain the risks of an investment product clearly and fairly
Placing you into unregulated investments without the appropriate authorisation
Recommending you transfer out of a defined benefit (final salary) pension when this was not in your best interests
Failing to conduct adequate due diligence on investment products they recommended
Accepting undisclosed commissions or inducements that created a conflict of interest
Providing advice outside the scope of their FCA permissions

FCA Rules Your Adviser Must Follow

Under FCA COBS 9, a regulated adviser must take reasonable steps to ensure that advice is suitable, having regard to your knowledge and experience, financial situation and investment objectives. Under Consumer Duty (effective July 2023), firms must also ensure customers achieve good outcomes and can demonstrate they acted in your best interests. A breach of either rule can give rise to a compensation claim.

How to Prove Financial Adviser Negligence

To succeed in a claim, you generally need to show three things:

Duty of care — the adviser owed you a duty to give competent, suitable advice (almost always established for regulated advisers)
Breach — the advice fell below the standard a competent adviser would have given
Loss — you suffered a financial loss as a result of following the negligent advice

Helpful evidence includes the original suitability report, your risk questionnaire, investment contracts, account statements and any correspondence with the adviser. See our evidence guide.

Compensation Routes

Route	Who Handles	Max Award	Timeline
FOS	Financial Ombudsman Service	Up to £430,000	3–12 months
FSCS	If adviser firm in default	Up to £85,000	6–18 months
Court	Edward & Amaury acting	No upper limit	12–24 months

Time Limits

You have 6 years from when the negligent advice was given, OR 3 years from when you first knew (or ought to have known) you had suffered a loss. Contact us even if you think you are out of time — see our time limits guide.

Frequently Asked Questions

Can I claim against a financial adviser who is still trading?

Yes. If the adviser or their firm is still FCA-regulated, you can complain directly to the firm, and if they reject your complaint, refer it to the Financial Ombudsman Service for a decision of up to £430,000.

What if my financial adviser has retired or the firm has closed?

If the firm has gone into administration or been declared in default by the FSCS, the FSCS can pay compensation of up to £85,000 per eligible claimant. For losses above this, or where the adviser's professional indemnity insurance is still in force, a court claim may be possible.

I signed a disclaimer — can I still claim?

Yes. Risk warnings and disclaimers do not override an adviser's duty to give suitable advice. Courts and the FOS regularly uphold claims against advisers whose clients signed documents acknowledging risk.

How long does a negligence claim take?

FOS complaints typically resolve in 3–12 months. Court claims usually take 12–24 months, though most settle before trial.

Do I need the original paperwork?

No. We can request the full client file, suitability report and risk questionnaire from the adviser or firm on your behalf using a Subject Access Request.

Talk to us

Free, no-obligation assessment on 01228 272 395, by info@edwardamaury.co.uk, or start your claim online. We work on a No Win No Fee basis.