Professional Negligence Against Financial Professionals
When financial professionals fall short of the standards expected of them, the consequences can be serious, especially when those mistakes lead to financial loss.
We support individuals and businesses seeking redress for poor service from financial professionals. Our team offers clear advice and cost-effective representation. We also provide specialist advice on litigation and policy coverage in professional negligence matters.
What qualifies as a professional negligence claim against a financial adviser?
Financial professionals, including accountants, financial advisers, tax consultants and others, need to be trusted by their clients, with whom they may build strong professional and even personal relationships. But no matter how experienced or well-regarded they are, mistakes can happen. And when they do, the consequences can lead to significant financial harm or loss.
To bring a professional negligence claim, it is necessary to establish three components:
You were owed a duty of care: The financial professional owed you a duty to exercise reasonable skill and care (for example, because you engaged or hired them to provide advice or services)
They failed to meet expected standards: Their service fell below what a reasonably competent professional in their field would have provided. This could include mistakes such as providing incorrect financial advice, errors in accounts or reports, missing important tax deadlines or other serious lapses
You suffered a loss as a result: Their mistake or poor advice caused you financial loss or harm that would not have occurred otherwise. For example, you might have incurred monetary losses, tax penalties or missed out on returns because of the professional’s negligence
Financial professionals will typically have insurance, which gives some comfort to prospective claimants that they will actually recover some or all of their losses.
Can I bring a professional negligence claim against a financial adviser, accountant or financial planner?
Yes, you can bring a negligence claim against any financial adviser or financial planner if they have breached their duty to you and caused you loss. Financial advisers, wealth managers, financial planners and similar professionals are all held to professional standards and owe a duty of care to their clients.
"What determines whether a professional can be held accountable is the nature of the service they provided, not just a job title. If someone has given financial advice or carried out work in a professional capacity and that service fell below the standard expected of a reasonably competent practitioner, they can be liable for negligence. What matters is whether they owed a duty of care, breached that duty and caused financial loss as a result."
James Berry
Partner & Head of Commercial Dispute Resolution North
Key contacts
James Berry
Partner & Head of Commercial Dispute Resolution North
Types of financial professionals and common negligence
Financial professional | Examples of negligence (breach of duty) | Potential consequences for client |
Financial Advisers / Wealth Managers / Planners
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| Client’s money put in high-risk or inappropriate investments leading to losses, retirement plans harmed, undue financial risk and stress. |
Accountants / Tax Advisers
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| Unexpected penalties from HMRC, business financial problems or insolvency, investors or stakeholders misled by erroneous accounts.
|
Auditors |
| Stakeholders (owners, investors, creditors) suffer losses and regulatory consequences for the business. |
Investment Managers / Stockbrokers
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| Portfolio value drops significantly, client loses capital or expected returns, possible tax implications or missed market opportunities.
|
Insurance Brokers
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| Client finds they are not covered when a loss event occurs (claim denied), financial loss due to an uncovered incident, paying for inadequate or unnecessary coverage. |
Pension Consultants
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| Pension fund deficits or misallocations affecting retirees’ benefits, companies facing increased funding costs, individuals receiving less retirement income. |
How do I claim? - The professional negligence claims process
If you have suffered financial loss due to a financial professional’s mistake, here is how the claims process typically works:
Contact our professional negligence team. We will listen to your situation and let you know if you might have a valid claim.
Our team will review your documents and evidence and advise you on your options.
If your claim has merit, we will follow the professional negligence pre-action protocol - usually by sending a preliminary notice and a formal Letter of Claim to the finance professional concerned.
Many claims are resolved through negotiation or mediation. We will handle all discussions and aim to secure a fair outcome without going to court.
If a settlement is not reached, we will guide you through the court process and represent you every step of the way.
We will keep things clear and straightforward throughout, so you always know what to expect.
Cases of claims against financial professionals
Suing a national firm of accountants for providing incorrect advice on the appropriate tax treatment of a client's financial instruments; proceedings have been issued and are ongoing, in a matter valued at approximately £160,000.
Defending an accounting practice against a professional negligence claim alleging vicarious liability for cheque fraud committed by one of its employees in the course of his employment.
Professional negligence claims against financial professionals FAQs
Yes. You can still bring a claim even if you have ended your relationship with the adviser. What matters is whether they owed you a duty of care at the time the negligence occurred, not whether you are still working with them now.
You will need to show that the adviser breached their duty and that this caused you financial loss. This can include written advice, contracts, emails, financial records and expert reports. The more detailed your evidence, the stronger your case.
Usually, you have six years from the date the negligence happened. In some cases, this may be extended if you only discovered the issue later, but acting promptly gives you the best chance of success.
Not always. Many claims are resolved through negotiation or mediation. If court is needed, we will guide and represent you throughout.
Yes. We regularly act for businesses that have suffered loss due to negligent financial advice or services.
That is common. We will help gather evidence to support your case and, if needed, bring in independent experts to assess the quality of the advice or service, so you are not left to challenge it alone.
Yes. If the advice was negligent and you relied on it to your detriment, you may still have a valid claim. The key is whether a competent professional would have given the same advice in the same circumstances.
Why choose us for your professional negligence claim against a financial adviser?
When it comes to handling complex claims against financial professionals, our clients trust us to deliver results with clarity, care and confidence. Here is what sets us apart:
We take a collaborative approach, drawing on expertise from across our full-service law firm to support your case from every angle
Over 1,300 legal experts across 12 offices throughout the UK
We are proud recipients of industry accolades and listed in The Times Best Law Firms 2026
Our lawyers are consistently recognised in leading legal directories, including The Legal 500 and Chambers & Partners
With years of experience in professional negligence law, we provide clear, practical advice at every stage of the process
We manage your claim proactively from day one, aiming to resolve matters swiftly and cost-effectively
Freeths is authorised and regulated by the Solicitors Regulation Authority in England and Wales and the Law Society of Scotland, so you can be confident you're in safe hands
Contact us today to discuss your claim with a specialist near you, whether that's face-to-face, over the phone on 0330 100 1014 or via video call.
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Meet our team
Sarah Foster
Oxford Office Managing Partner & Divisional Head of Private Client Services
James Berry
Partner & Head of Commercial Dispute Resolution North
Richard Coates
Partner & National Head of Automotive
Mark Keeley
Partner – National Head of Private Client Dispute Resolution
Andrew Dashwood-Begg
Managing Associate
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