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Claim Type — Financial Advisor Negligence
You trusted someone with your financial future. Whether it was your retirement savings, a property investment, or funds you had spent years building — you handed that trust to a licensed professional who was supposed to act in your best interests. When their advice turned out to be wrong, unsuitable, or self-serving, the damage landed squarely on you.
That is not acceptable. You may have legal options. Fair Go Australia connects Australians with specialist professional negligence lawyers who handle financial advisor claims across the country — on a no-win, no-fee basis.
Understanding your rights
Financial advisor negligence occurs when a licensed advisor gives advice that falls below the standard a competent professional would provide in the same circumstances, and that advice causes you measurable financial loss. Under the Corporations Act 2001 (Cth), licensed advisors owe their clients a “best interests duty” — a legal obligation to put your interests ahead of their own. When they breach that duty, negligence law may give you a right to claim.
Section 961B of the Corporations Act 2001 (Cth) requires licensed financial advisors to act in the best interests of their clients when providing personal financial advice. This is not a vague aspiration. It is an enforceable legal obligation, overseen by the Australian Securities and Investments Commission (ASIC).
In simple terms, your advisor was not permitted to recommend a product because it paid them a commission, or push an investment strategy that suited their business model rather than your circumstances. If they did — and you lost money as a result — you may have grounds for a claim.
Real-world scenarios
Financial advisor negligence takes many forms. The following scenarios are among the most common we see. If your situation fits any of these patterns — or if something simply does not feel right about the advice you received — it is worth getting a specialist legal opinion.
Claim eligibility
Not every bad investment creates a legal claim. Markets go up and down — that alone does not make an advisor negligent. What matters is whether the advice itself fell below the standard a competent professional would have provided. To assess a claim, four elements generally need to be present.
A licensed financial advisor owes their clients a duty of care as a matter of law. If they were licensed by ASIC and retained to provide personal financial advice, that duty existed. This element is almost never in dispute.
Did their advice fall below the standard of a reasonably competent financial advisor? Recommending high-risk products to someone who needed capital preservation is a clear departure from the required standard.
You need to show that you acted on the advisor's recommendation and that this directly caused your loss. A specialist lawyer can work through the causation question with you in your specific circumstances.
You must have suffered a quantifiable financial loss as a result of the negligent advice. This can include lost returns, additional tax liabilities, or funds that cannot be recovered from the investment.
If all four elements are present in your situation, you may have a viable claim. The best way to find out is through a free case evaluation with a specialist lawyer — no obligation, no cost.
Step-by-step process
The process is more straightforward than most people expect. Here is how it typically unfolds:
The Australian Financial Complaints Authority (AFCA) is a free, independent dispute resolution service that can award compensation of up to $1,085,000 for financial advice complaints. For smaller or more straightforward claims, AFCA can be an efficient pathway. For larger or more complex matters, court proceedings may achieve a better outcome. A specialist lawyer will advise on which route makes sense for your specific situation.
Your potential recovery
The purpose of a professional negligence claim is to put you back in the financial position you would have been in if the negligent advice had never been given. Depending on your circumstances, this may include:
Every claim is different, and outcomes depend entirely on the specific facts. We will never make promises about what you will recover — but we will give you an honest, realistic assessment from the outset.
Time limits on your claim
Time limits on professional negligence claims are strict. In most Australian states, the general limitation period is six years from the date the loss occurred. In states that apply a discovery-based rule — including New South Wales and Queensland — the period may be three years from the date you became aware, or reasonably should have become aware, of the negligence.
Financial advice claims can be particularly complex when it comes to timing. The harm often emerges gradually — a portfolio that underperforms for years before the full extent of the loss becomes clear, or tax implications that do not surface until an ATO audit. This can make it difficult to pinpoint exactly when the limitation period started running.
In Australia, professional negligence claims — including financial advisor negligence — must generally be commenced within three to six years, depending on your state and when you became aware of the loss. In financial advice cases, time limits can be difficult to identify because harm often emerges gradually. Missing the deadline can permanently extinguish your right to claim. If you are unsure whether your limitation period is still open, contact our team for a free assessment as soon as possible.
Why Fair Go Australia
We are not a generalist firm that handles whatever comes through the door. Professional negligence is all we do — and within that, we have worked on financial advisor claims involving everything from unsuitable superannuation advice to complex managed investment schemes. The lawyers in our network have seen the playbook that financial institutions use to resist claims — and they know how to respond to it.
Professional negligence is all we do — not a generalist firm that treats your matter as secondary to bigger commercial work.
Our lawyers understand the Corporations Act obligations, ASIC regulatory framework, and the tactics financial institutions use to resist claims.
You pay nothing upfront. Costs are explained clearly and in writing before any action is taken — no surprises.
Phone and video consultations available nationally. Where you are located does not limit your access to specialist advice.
If you believe a financial advisor’s conduct has caused you financial harm, the first step is a free, confidential conversation with a specialist lawyer. There is no obligation and no cost. We will give you a clear, honest assessment of your situation — including whether a claim is viable, what it might be worth, and how long it would take.
Zero obligation. Confidential. We respond within 1 business day.
Zero obligation. Confidential. We respond within 1 business day.
Frequently asked questions
Yes — if the advice breached their duty of care and caused you measurable financial loss, you may have a viable claim. Licensed financial advisors are subject to the best interests duty under section 961B of the Corporations Act 2001 (Cth), and a failure to meet that standard can give rise to legal liability. The threshold is not whether the investment lost value — it is whether the advice itself was below the standard a competent advisor would have provided.
Market losses alone are not negligence. Investments can — and do — lose value for reasons entirely outside any advisor’s control. The legal question is whether the advice given was appropriate for your circumstances at the time it was given. If a competent advisor would have recommended something different — particularly if the product was inappropriate for your risk profile or financial goals — that is where negligence may arise.
Not necessarily. AFCA is a free dispute resolution service that can be an efficient pathway for many claims, with a compensation cap of $1,085,000. However, for larger or more complex losses, litigation through the Federal Court of Australia or a state Supreme Court may produce a better outcome. An ASIC complaint is a separate regulatory matter. A specialist lawyer can advise you on the right combination of pathways for your situation.
Fair Go Australia operates on a no-win, no-fee basis. You pay nothing upfront. Before any action is taken, fees and cost arrangements will be explained to you clearly and in writing. There are no surprises.
It depends on the complexity of the matter and the pathway taken. An AFCA complaint can be resolved in a matter of months for straightforward cases. Contested litigation through the courts typically takes one to three years. Once a specialist lawyer has reviewed your situation, they will give you a realistic timeframe based on your specific circumstances.
Professional indemnity insurance requirements mean that most licensed advisors carry coverage that continues to apply even after they have left the industry or changed employers. In some cases, the dealer group or licensee that employed the advisor may also carry liability. The fact that an advisor is no longer practising does not necessarily prevent you from making a claim.
Have a question not answered here? Contact our team for a free, confidential conversation.
Our specialist lawyers handle financial advisor negligence claims across Australia. If a licensed professional has cost you money through negligent advice, you deserve to know your options.
Our goal is to help people in the best way possible. this is a basic principle in every case and cause for success. contact us today for a free consultation.
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