By: Mark Walter
Slater & Gordon is investigating compensation claims on behalf of investors who received financial advice from Commonwealth Financial Planning and Financial Wisdom, subsidiaries of the Commonwealth Bank of Australia. Slater & Gordon has extensive experience in acting for people who have suffered loss as a result of poor financial advice. Below is a recent example of a professional negligence case run by Slater & Gordon.
Unauthorised investments
Slater & Gordon acted for a client who had a protracted dispute with her financial advisor. The client had previously engaged other solicitors who had been unable to resolve the dispute.
The client approached the financial advisor for advice following the sale of her small business, which she had worked to build up over many years. The proceeds of the sale represented her 'nest-egg' for retirement. As our client was very concerned to protect the funds, she sought the advice of a financial advisor on how best to invest them.
Our client had told the financial advisor that she wanted a reliable and stable income during retirement. She said she didn't want the money being put into high risk investments and that she wanted to be able to access the funds in an emergency. She was uncomfortable with borrowing money to invest.
The investments that were recommended did not meet these objectives. The financial planner put our client into investments that were risky and were not able to be easily accessed. Further, the financial adviser failed to properly explain the risks associated with the investment strategy.
A number of the investments recommended preformed very poorly. Some investments were frozen. This placed our client's plans for retirement in serious jeopardy. Our client did not know that her money had been invested into risky products by their advisor. By the time that she realised her investments were in danger, it was already too late – significant losses had been incurred.
As a result of the settlement negotiated by Slater & Gordon, our client is now enjoying a financially secure retirement.
People wishing to obtain independent advice regarding their claims against Commonwealth Financial Planning and Financial Wisdom or seeking further information about our investigation should contact us as soon as possible.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
