Suppose an adviser is sued…
I go to an adviser and he ruins my money. I make a huge loss, and so go to court, and the court the adviser a few questions:
1. You claim to be a financial doctor, have you:
– gone through at least 5 years of training like a doctor?
– what in your education process allowed you to be a financial doctor?
– what books on finance, mathematics, psychology, equities, mutual funds, etc. have you read?
– have you interned with a practitioner of repute and handled difficult cases jointly as a part of your training?
2. Who has licensed you to be a financial doctor, as you claim to be?
3. Has any Regulator authorized you to act as an adviser?
4. Does that great Regulator have any rigor to make you an adviser or is it just an application ?
5. Did you fill up a Needs and Risk Analysis questionnaire before you ventured giving financial advise to the client?
6. Was the client competent enough to understand your jargon?
7. Even assuming for a second that you understood investments how did you venture into other areas like mortgage, and insurance?
8. Why did you not tell the client the risks of Term insurance? Do you think the cheapest term insurance bought online is the best?
9. This client has a very low level of risk understanding – how did you think he understood your advice?
10. You have given him oral advice and not followed up on whether he did it or no – is that not gross negligence?
11. You run a blog and offer generic advise – is it to fool people or to spread knowledge?
12. You have asked the client to invest in these old mutual funds saying that they have a big corpus. That is obvious no? Old funds will have more corpus? This is gross negligence.
Mr. Adviser all this is Gross Negligence. We admit that there is no course in India which teaches anybody to be a financial planner, but it is sheer arrogance to think that being trained in accountancy and having 30 years experience in stock markets and mutual fund training prepares you to be an adviser. You have no government recognised degree in financial planning.
Cases referred to: Nizam of Hyderabad case and the State of Punjab case: – at least the doctors reading this post know what I mean!! LOL…
VK
Having met the financial ‘engineer’ and now the financial ‘doctor’, only one possibly left is the financial ‘lawyer’!
BTW, have no idea what the post’s conveying, but I’d think the client has as much responsibility to be aware and knowledgeable. Instead of seeing through the eyes of the adviser, listening through the ears of the adviser, and thinking through the head of the adviser, the client should put his/her own faculties to good use…
moronbuffet
I go to an adviser and he ruins my money. I make a huge loss, and so go to court, and the court ask the plaintiff a few questions: –
1) do you have enough money to pay for the lawsuit?
if you had enough money and common sense you would not have contacted an advisor in the first place. So we are guessing you are already broke
2) Do you have the patience and risk tolerance of winning a lawsuit? You see it is the no of years ‘n’ waiting for the verdict that matters
Case dismissed.. plaintiff fined a sum of 1 lakh for wasting court’s time.
Jayesh
Is this true “..that there is no course in India which teaches anybody to be a financial planner, but it is sheer arrogance to think that being trained in accountancy and having 30 years experience in stock markets and mutual fund training prepares you to be an adviser. You have no government recognised degree in financial planning.”
Pls share your opinion on CFP being offered by FPSB
[Link: http://fpsb.co.in/scripts/CFPCertification.aspx%5D
Thanks..
Regards,
Jayesh P Matani, PMP