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sueing stock brokers...??
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johnfc
Posts: 6 Forumite
In May I invested my entire inheritance 230 grand with a well known stock broker, then left the UK to travel Asia.
6 months later (about 3 weeks ago) I emailed them from Vietnam to ask how my investments were doing. They replied that my holdings had suffered a loss 40 grand (NOT taking into account the loss of sterling value)!
This was the first I had heard from them in 6 months; if I hadn't emailed them, who knows when they would have told me!
Could this be regarded as stock broker negligence?
6 months later (about 3 weeks ago) I emailed them from Vietnam to ask how my investments were doing. They replied that my holdings had suffered a loss 40 grand (NOT taking into account the loss of sterling value)!
This was the first I had heard from them in 6 months; if I hadn't emailed them, who knows when they would have told me!
Could this be regarded as stock broker negligence?
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if you have only lost less than 20% then your brokers have been brilliant.0
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Probably better to sue yourself for being such a plonker!0
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what investment instructions did you give them ?0
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How on earth could it be stockbroker negligence? I doubt stock brokers get in touch with all clients to personally inform them of their current losses, especially if their clients have disappeared around the world.In May I invested my entire inheritance 230 grand with a well known stock broker, then left the UK to travel Asia.
6 months later (about 3 weeks ago) I emailed them from Vietnam to ask how my investments were doing. They replied that my holdings had suffered a loss 40 grand (NOT taking into account the loss of sterling value)!
This was the first I had heard from them in 6 months; if I hadn't emailed them, who knows when they would have told me!
Could this be regarded as stock broker negligence?
They've done a damn good job to keep your investments at only an 18% drop or so, the markets themselves have fallen much more than that. So no, you've got no grounds to sue whatsoever if you want my opinion.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
This post's a wind up, surely.0
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So no, you've got no grounds to sue whatsoever if you want my opinion.
it depends on what instructions you left.... if you said "make sure my capital is 100% safe" then he does have grounds
more info required before anyone can say one way or the other
- which markets - equity markets in general yes, but maybe didn't ask to be invested in equity marketsthe markets themselves have fallen much more than that.0 -
True enough, but from my experience people almost never give all their money to a stock broker for 100% capital protection, nor do they generally go to one to invest in anything but equities with a smattering of bonds (I know, assumptions are bad, etc, but the likelihood is that he just asked for a long term growth plan or something).it depends on what instructions you left.... if you said "make sure my capital is 100% safe" then he does have grounds
more info required before anyone can say one way or the other
- which markets - equity markets in general yes, but maybe didn't ask to be invested in equity markets
In any case, it looked as though he was asking why he hadn't been contacted to explain the failure, and I'd answer that the fact that he's in Asia and that he's outperformed the equity markets would generally mean that he's not due for an explanation. I guess the assumption is that if you've handed over a quarter of a million to a stockbroker, you have some experience with markets and know to actually check your funds yourself every now and then, meaning that a drop at this time wouldn't be much of a surprise.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
it depends on what instructions you left.... if you said "make sure my capital is 100% safe" then he does have grounds
If that was the case you wouldnt go to a stockbroker. 100% capital security isnt what you get from a stockbroker. They deal in traded assets/direct investment. Not packaged products.
The issue here is that the OP hasnt said what service he purchased, what instructions he gave or really anything about the transaction.
The stockbroker could have been execution only. Transactional one off advice, discretionary fund management or some hybrid option. However, in all of those cases, it's hard to see any liability by the stockbroker as investment returns are something you cannot complain about.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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