Invest
Investor rights: What you should know about financial advice
Many investors do not understand their rights when it comes to investment advice and financial services that could protect them against financial loss, says Shine Lawyers’ professional negligence expert, Joseph Crane.
Investor rights: What you should know about financial advice
Many investors do not understand their rights when it comes to investment advice and financial services that could protect them against financial loss, says Shine Lawyers’ professional negligence expert, Joseph Crane.
Speaking to Nest Egg, Mr Crane said many investors who lose money from investments chalk it up to the general risks of investing, when in fact they may be eligible for compensation.
“Advisers and financial institutions have strict requirements on the types of things they can tell you or advise you to do. For example, advisers are not supposed to provide you with advice that is not in your best interests, credit providers are not allowed to give you loans that you cannot afford, and neither are allowed to make misleading representations,” he said.
“But if they entered into those investments because of bad financial advice from an adviser, they may be able to seek compensation. Also, if an adviser fails to warn you against making an unsuitable investment, you may be able to claim against them.”
Mr Crane added that some investors find themselves in bad investments because they are not properly accounting for tax liabilities.
“They end up with a tax bill they were not expecting and then try and come up with ways to minimise their tax liability after the fact. This makes them desperate and susceptible to taking bad investment advice, which can put them in an even more precarious position,” he said.
“It is much better to speak to your accountant beforehand so that appropriate plans can be put in place.”
But in order to be successfully compensated, a claim must be made in a reasonable time frame.
“If you do not bring a claim in time, you can lose it,” Mr Crane said.
“So, make yourself aware of the obligations imposed on financial advisers and financial services so you can (a) hopefully avoid bad advice or financial services, and (b) understand when you should complain or seek legal help.”
RELATED ARTICLES
Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more
Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more
Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more
Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more
Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more
Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more
Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more
Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more
Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more
Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more
Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more
Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more
Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more
Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more
Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more
Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more
