Firm complaint
Free, and the record it creates is useful later. Ask for the full advice file with the complaint.
09 Adviser negligence
Financial adviser negligence: bad advice, bad luck, or neither.
Most disappointed investors have not been treated negligently. Some have. The distinction is not how much money was lost — it is whether the adviser did something a reasonably competent adviser in that position would not have done, or failed to do something they would have done.
Short answer
Adviser negligence means the adviser failed to meet the standard reasonably expected of a competent adviser in that situation, and that failure caused loss. It is judged on the facts known at the time, not on how markets behaved afterwards. A complaint to the firm and the Ombudsman is the cheaper route before any court claim.
Indicators only. Not legal or financial advice. Not a prediction of outcome.
Check your claimCompare the three routes
DILIGENTIA QUAM IN SUISthe diligence a careful person applies to their own affairs
01 Is this you?
Tick what fits.
A claim is worth pursuing when the facts line up. These are the facts that matter most for this product. If three or more describe your situation, the checker is worth five minutes.
- The recommendation went against what you had told the adviser you needed.
- No suitability report, fact find or attitude to risk record exists for the advice.
- You were told a product was suitable for you when the documents said otherwise.
- The adviser did not check whether you had other savings, income or debts.
- A transfer or switch gave up a benefit that was never valued.
- The adviser had a financial interest in the recommendation that was not disclosed to you.
- You asked a specific question and the answer was wrong, in writing.
- An annual review was promised and never happened, and you only found out years later.
02 How it works
How a claim works for this product.
Know what has to be established
In a court claim you generally have to show three things: that the adviser owed you a duty to take reasonable care, that they fell below the standard of a reasonably competent adviser, and that the loss you claim flows from that failure. That third element — causation — is where most claims are won or lost, because a bad recommendation and a bad outcome are not the same thing.
Judge the adviser on what they knew
The standard is assessed at the time of the advice, on the information available then. An investment that later collapsed does not prove negligence; an investment that later did well does not disprove it. What matters is whether the recommendation was reasonable on the facts the adviser had, and whether the risks were explained.
Use the regulatory rulebook as the standard, where it applies
Where the adviser was authorised, the rules it had to follow describe what good practice looked like, and a breach of an FCA rule can itself give a private person a right to sue under section 138D of the Financial Services and Markets Act 2000. Claimants commonly plead both the statutory right and common-law negligence together.
Try the free routes first
A firm complaint costs nothing, and the Financial Ombudsman Service is free to consumers and decides cases on fairness as well as rules. For complaints referred on or after 1 April 2026 about acts or omissions on or after 1 April 2019 the award limit is £455,000. Court is normally for losses above that, or where the defendant is outside the Ombudsman’s reach.
Take the dates seriously
Negligence claims run on limitation: six years from the cause of action or three years from the date of knowledge, whichever is later, with an overriding fifteen-year longstop. Where the last advice was long ago, this can decide the case before any of the merits are considered, so raise it with a solicitor early.
03 The clock
Time limits are the first thing to check.
- Firm complaint: normally within 6 years of the advice, or within 3 years of becoming aware of cause to complain.
- Ombudsman: within 6 months of the final response, normally due within 8 weeks.
- Court: 6 years from the cause of action or 3 years from the date of knowledge, whichever is later.
- Longstop: an overriding 15 years from the act or omission alleged to constitute the negligence, under section 14B of the Limitation Act 1980.
- Continuing advice: where the adviser kept reviewing the portfolio, the later reviews may have their own dates. That is a point for a solicitor, not a website.
04 The routes
Which route fits your facts.
Financial Ombudsman Service
Free to consumers, and not restricted to a strict legal test. It can look at whether the adviser acted fairly and whether the advice was suitable.
FSCS
Where the adviser’s firm has failed and was authorised for the advice. Investment claims are limited to up to £85,000 per eligible person, per firm for firms that failed after 1 April 2019.
Court
For losses above the Ombudsman’s limit or against parties outside its jurisdiction. Requires a solicitor, and often funding or a conditional fee arrangement — ask for the terms in writing.
05 Evidence
Documents to gather.
You do not need everything before you start. But a complaint that names dates, amounts and documents is much harder to answer with a template letter.
- The advice file: fact find, attitude to risk record, recommendation and notes
- The suitability report and any annual review reports
- Product documents and risk ratings for what was recommended
- Statements showing what you paid in, what you hold and what it is worth
- Your own records of what you told the adviser about your needs
- Fee agreements, commission disclosure and terms of business
- Correspondence in which you asked questions and received answers
- Anything showing the adviser’s firm status, from the FCA Register
06 Questions
Questions people ask about this product.
What is the difference between negligence and bad service?
Negligence is a failure to meet the professional standard, and it has to cause measurable loss. Bad service — slow replies, poor communication, a rude adviser — is a service complaint. The two can overlap, but only the first supports a claim for money.
Does a loss prove negligence?
No. Investments lose value for many reasons nobody is accountable for. Negligence depends on the quality of the advice and whether that caused the loss, judged on what was known at the time.
What is the standard against which an adviser is judged?
Typically what a reasonably competent adviser, with the same information, would have done. Where the adviser was authorised, the regulatory rules describe what good practice required, and a breach of an FCA rule can support a statutory claim under section 138D.
Do I need a solicitor to complain?
No. The firm complaint and the Ombudsman are both designed for consumers to use directly, and the Ombudsman is free. A solicitor becomes necessary for court proceedings, for group claims, or where the sums involved justify the cost.
Can I claim if the adviser has retired?
You claim against the firm, not the individual, in most cases; where the firm no longer exists, FSCS may be relevant if it was authorised. Personal claims against a retired individual are possible in principle but are rarely straightforward.
What does a solicitor’s conditional fee agreement actually mean?
Usually that you pay nothing if the claim fails, and that a success fee — a percentage uplift — is deducted from what you recover if it succeeds. The percentages and the caps are set by the agreement, not by this site. Always ask for the terms in writing before signing, and ask what happens if you lose.
Sources
Every rule, limit and deadline on this page comes from the official sources below. Each was read on the date shown. Where we could not verify a rule against the official text, we have left a visible instruction to confirm it rather than describing it from memory.
Financial Services and Markets Act 2000, section 138D — Actions for damages
legislation.gov.uk (The National Archives)
Checked 12 October 2026 — The statutory right of a private person to sue for loss caused by a firm’s breach of an FCA rule.
Limitation Act 1980, section 14A — special time limit for negligence actions
legislation.gov.uk (The National Archives)
Checked 12 October 2026 — Six years from the cause of action, or three years from the date of knowledge if that is later.
Limitation Act 1980, section 14B — overriding fifteen-year time limit
legislation.gov.uk (The National Archives)
Checked 12 October 2026 — The absolute fifteen-year longstop for negligence claims that do not involve personal injury.
Financial Conduct Authority
Checked 12 October 2026 — The complaint process, the eight-week final response and the six-month window to go to the Ombudsman.
Understanding compensation for financial loss
Financial Ombudsman Service
Checked 12 October 2026 — Award limits for cases referred to the Ombudsman, and how compensation and interest are worked out.
Financial Services Compensation Scheme
Checked 12 October 2026 — Investment compensation limits per eligible person per firm, and what FSCS cannot cover.
MIS-SOLD INVESTMENT / CLAIM CHECKER
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