Alan Shearer, the former England, Newcastle and Blackburn Rovers star and current Match of the Day pundit, has commenced an action in the High Court against his former financial adviser and a firm offering pension advice, following substantial losses he sustained as a result of, what he shall say, was negligent advice. Alan Shearer assesses his losses at £9 million and the claim is being defended.
The very nature of investments is that they carry an inherent risk and it doesn’t necessarily follow that if an investment fails, your adviser is liable for your losses. However, an adviser is under a duty to exercise reasonable skill, care and diligence. This includes analysing the client’s objectives and making a judgment in relation to the appropriate risk versus potential reward. It is also essential that the adviser assesses the experience and sophistication of the investor client in order that the appropriate advice may be tendered and only suitable products recommended.
Alan Shearer’s legal team will tell the court that their client had limited knowledge or experience of investments and that he relied upon the advice and expertise of the Defendants. The sophistication of Shearer as an investor will be a central issue to be addressed by the trial judge.
Here at Farleys, we have a wealth of experience of advising clients who have sustained losses following negligent financial advice. We are currently retained to act on behalf of a group of footballers in a multi-million pound action to recover damages following a failed investment. Should you require any guidance in relation to a claim for professional negligence, get in touch.