It has recently been reported that more than 100 of the biggest names in football face losses of an estimate £100 million as a result of failed investments into film schemes and property ventures. Some of these football stars face bankruptcy and financial ruin.
Former Arsenal, Manchester United and Liverpool players, including Rio Ferdinand, Andy Cole, Martin Keown, Robbie Savage and Danny Murphy are among more than 100 footballers to have invested via Kingsbridge Asset Management. The film schemes sold by the firm involved footballers investing money, which was then supplemented several times over with huge loans from banks. These investments then generated tax rebates for the players, with some of the money being re-invested in property ventures that subsequently failed.
Although all details are not yet known, it is likely that many of these investments were made as a result of negligent investment advice given by financial advisors. In some circumstances financial advisors are attracted by high commission returns, and so do not properly advise of risk, or advise clients to invest all or a significant proportion of their capital into a single investment, when a spread of investments would be more suitable. Often, with new or more complex investments, some financial advisors simply do not understand the risk.
In many cases investors can often claim their losses from the financial advisor. The financial advisor will almost always have professional indemnity insurance that will cover losses and legal costs incurred as a result of negligent investment advice. In the unlikely event the financial advisor does not have insurance or the insurance policy does not cover that class of investments, then the ultimate fall back is the Financial Services Compensation Scheme, which will award up to £50,000.
There are a number of ways to pursue advisors, which includes court action and a complaint to the Financial Ombudsman Service. Myerson’s specialist professional negligence solicitors have extensive experience in advising clients on losses incurred as a result of negligent investment advice, and have pursued many claims through the court, the Financial Ombudsman Service and the Financial Services Compensation Scheme.
If you have a negligence issue which you wish to discuss with one of our legal team then please contact us on 0161 941 4000 or alternatively you can use the enquiry form found on the right of this page.