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.
Loss of superannuation income stream
Slater & Gordon acted for a retiree who was receiving a
pension from his superannuation fund. Our client wanted to
supplement this income with a regular income stream and sought
advice from a financial adviser.
Our client told his financial adviser that he wanted a
conservative and diverse portfolio because he was concerned about
losing his capital. He also wanted some flexibility to changes his
investments to suit his personal circumstances.
Our client's funds were invested in a managed investment
scheme (the Fund) that carried a risk of loss of
capital and prevented him from accessing his funds until the
conclusion of a fixed term. After the initial investment term
expired, our client rolled over his funds for a further term at the
recommendation of his financial adviser.
While his funds were invested in the Fund, the Fund ceased
making distribution payments and all withdrawals from the Fund were
frozen. This resulted in our client being unable to access his
funds and the income stream from his investment ceased.
Slater & Gordon argued that had our client been properly
advised of the risks associated with the Fund, he would not have
invested in the Fund or rolled his funds over for a further term.
Instead, he would have invested in a less risky product that
protected his capital.
When our client first contacted Slater & Gordon, he had lost
almost all of his initial investment as well as the opportunity to
invest his money in a more appropriate product or portfolio.
Upon reviewing the claim, our lawyers identified that the
financial adviser had breached a number of duties it owed to our
client. In particular, the financial advisor failed to:
exercise reasonable care in providing financial advice to our
identify and advise our client of the risks associated with the
assess whether the Fund was appropriate for our client having
regard to his personal circumstances.
With the help of our legal team, our client resolved his claim
against the financial adviser and received compensation for the
financial losses he had suffered as a result of the financial
adviser's negligent advice.
People wishing to obtain independent advice regarding
their claims against Commonwealth Financial Planning and Financial
Wisdom or seeking further information about our investigation
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.
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