Managing finances can be a very complicated thing – especially if you are not very good at it. Taxes, interest, fees, and loans, can bring us headaches in business, and our everyday life. Therefore, many people decide to hire a financial advisor. Usually, that’s a good thing. However, some people may have different experiences.
So what if we get poor financial advice and get into a situation where we have suffered financial damage? Can we then sue for poor financial advice and how can we protect ourselves from it?
What Is Financial Advice In Practice?
When you need help or advice on how to manage, increase, or ensure the security of your money or financial funds – it is best to consult an expert in this field, and that is a financial advisor.
So, financial advice is any recommendation or guidance you get from your financial advisor. Such a service aims to educate, inform and guide the potential client – regarding his or her financial management.
Based on an individual approach, the financial advisor will look at what the potential client has – and what he wants to achieve. Based on these analyzes, the counselor will work with the client to find the best way to achieve long-term goals and plans.
How Do You Choose A Financial Advisor?
Thanks to the development of the market, technology, and the modernization of the domestic economy – there are experts in this field who can give you answers to all your questions. Their job is to solve issues related to your current and future financial situation – and teach you how to manage your finances better.
However, you need to be careful and know exactly why you need a financial advisor. Why is this important? First of all, you need to know whether you want to hire a professional – or just want the ad hoc advice.
Financial advice can be professional or amateur. By professional we mean that you as a client choose an expert in the field of finance – and you pay for the service of financial analysis and proposed solutions. On the other hand, we have an amateur approach – where we can get financial advice on certain Internet blogs, forums, or attending webinars, etc.
Of course, in both cases (and especially with amateur advice) – we must be very careful. Namely, it has not once happened that clients suffered financial damage due to poor financial advice.
What to do then? You are in a situation where you are at a loss – and you may have even paid for bad financial advice. Can you be compensated in that case? In other words – can you sue for bad financial advice? The answer is YES.
Can You Sue Your Broker For A Bad Financial Advisory?
If you are facing financial losses due to a failure in the work of your financial advisor – you must know that you have the basis to file a lawsuit. However, given the specific field of this business – this is also a very specific legal area.
Therefore, according to www.mdf-law.com, you need to seek the help of an experienced lawyer who is a professional in the field of financial loss compensation. We need to know that these are not just any losses – but most often the losses we have suffered as a result of poor investment.
If the bad investment and consequently the loss of money were due to negligence or insufficient knowledge of the financial advisor – the lawsuit will be quite appropriate and well-founded.
On the other hand, it sometimes happens that your financial advisor is part of the chain of corruption of your competitors – and then the responsibility of your financial advisor is not only legal but also criminal.
Lawsuit Or Arbitration? What to do?
When you happen to have a problem due to poor financial advice, the first thing you will do is consult your lawyer. Your next steps will depend largely on the contract you have made with your broker.
If you have found your financial advisor within a brokerage firm – then it is very likely that your contract already contains arbitration clauses. In that case, arbitration of the dispute will be mandatory. This can be a good way to solve the issue – as it allows you to resolve a dispute that has arisen faster and more efficiently.
If you do not have an arbitration clause or you have reached out to your financial advisor in another way – a lawsuit will be the only solution. The problem is that the whole court process can take a little longer depending on the circumstances of your case.
Take Care Of Obsolescence
When filing a lawsuit for poor financial advice, you must lookout for the deadlines of the lawsuit – more precisely, you must take care that it doesn’t become obsolete. Therefore, you, or your lawyer, must take into account the period within which such a lawsuit may become statute-barred.
If you miss this deadline, you will not be able to claim any financial damages if they are inflicted on you. Even when obsolescence does not occur, you shouldn’t wait long to file a lawsuit against poor financial advice. Why? There are many reasons for it. Witnesses who may be the key to such cases may forget the circumstances under which certain things have occurred.
Also, the evidence can be ignored or even concealed. Therefore, don’t give the defendant extra time to prepare – react immediately. If you react to the lawsuit promptly, the chances are higher that you will prove that you have suffered a loss due to poor financial advice.
Not all financial advisors have enough experience nor will they offer you the same level of service. Therefore, when choosing a broker, assess whether he can meet your needs. Make sure he is known in his professional environment, whether he is recommended – and make sure you understand each other.
If you still face problems due to poor financial advice – you should know that you have the right to sue, but you need the help of experienced lawyers who specialize in this legal field