Online trading scams have become increasingly prevalent, with the market saturated by brokers who often violate rules, causing significant financial and physical harm to their clients. Claim compensation for lost money from these scams today.
Have you lost money trading online?
If you are UK-domiciled investment client, then trading platforms (regardless of where in the world they are based) must comply with the relevant rules set out in the Financial Services and Markets Act 2000 (‘FSMA’) and the Conduct of Business Regulations (‘COBS).
Investment firms must:
- Ensure that your investment account was appropriate, having regard to your investment experience, your level of understanding of the product and your financial resources.
- Warn you if they consider that your account was not appropriate.
- Not pressurise you into making further deposits into the account.
- Not pressurise you into voluntarily electing to be treated as a ‘professional investor.’
- Not provide financial advice to you, or undertake any other regulated activities, in relation to the investment account if they are not authorised by the Financial Conduct Authority to undertake regulated activities.
Unfortunately, we regularly find that many investment businesses and brokers dealing in CFD products and Spread Betting simply fail to comply with the above rules.
Many of these firms are not based in the UK but instead operate from jurisdictions with less stringent regulatory requirements.
Is your investment with an overseas company?
We can help you! Many of these firms are not based in the UK (though we of course handle UK-based matters!) but instead operate from jurisdictions with less stringent regulatory requirements, such as:
- Cyprus
- Malta
- Gibraltar
- St Vincent and the Grenadines
- The British Virgin Islands
- The Isle of Man
- Australia
- Denmark
- Italy
- South Africa
- Israel
Can I make a claim for online trading?
Regardless of where your broker is based, if you are a UK domiciled retail investment client you are entitled to benefit from the regulatory safeguards issued by the Financial Conduct Authority.
If you had a CFD or Spread Betting account with a broker, then you may be entitled to claim compensation for the financial losses you have incurred as a consequence of any of the following:
- Financial advice given by a broker who was not authorised to provide advice.
- Pressurised sales tactics designed to keep you depositing more ‘margin’ into the account.
- Failing to warn you about the appropriateness of the account
- Pressurising you into voluntarily electing to be treated as a ‘professional investor’ so as to attract a greater degree of leverage on the account
- Continuing to allow you to trade when it was clear you did not fully understand the product in which you were investing.
Oakwood Solicitors have acted on behalf of a number of clients in connection with claims against brokers and trading platforms – both in the UK and in offshore jurisdictions. We have been successful in obtaining substantial sums in compensation for our clients and we may be able to assist you.
For a free no obligation discussion about your case, please contact us by using the below details.
Frequently asked questions
Why should I use a solicitor?
Financial products are complex, and you need to be able to articulate the problem with reference to any legal or regulatory frameworks.
By using a solicitor who is a specialist in online trading claims you will ensure that you put your best case forward and maximise your chance of success.
We have seen numerous cases in the past where mis-selling victims have pursued a legitimate claim themselves, only to have it turned down due to a technicality or because key grounds have not been particularised.
You have a higher chance of success by working with a Solicitor, who will ensure that there are no technical grounds for turning down your claim and put you in the best possible position to receive what you are owed.
How long does a claim take?
There are a number of features that will impact how long a claim may take to conclude.
These include the complexity of the case, whether the claim is against an active adviser, the Financial Ombudsman or the FSCS, and whether liability is admitted or denied.
If liability is admitted, then the claim process is much shorter, and we would expect a claim to be concluded within 3-6 months. Alternatively, if liability is denied and the claim must be issued at court then the claim can take between 12-18 months depending on the availability of the court.
If the claim has been made against the FSCS then we would expect the claim to be concluded within 6 months.
As each case is unique it is difficult to provide a generic time for conclusion of the claim however Oakwood Solicitors will give you an indication of how long your claim is likely to take to conclude as part of our initial review.
How much will it cost you to make a claim?
We operate on a Damages Based Agreement (“DBA”) more commonly known as a ‘no-win, no-fee’ agreement. If we fail to secure you a settlement, you will not be charged.
How much compensation will you receive?
We cannot provide an exact figure until we have completed our investigation as your loss will be dependent on the amount invested and the nature of the investment.
The general purpose of a claim is to put you back in the position you would have been in, had you not received the negligent advice to trade.
If your claim is against an active adviser, then the sum of compensation that we will seek to recover will be equivalent to any losses that you have suffered.
If your claim is against the Financial Ombudsman, then the compensation cap if £150,000.00. This means that the Financial Ombudsman can award compensation up to a maximum of £150,000.00.
If your claim is against the FSCS then the compensation cap for any firm that was declared in default on or before the 1st of April 2019 is £50,000.00. If the firm was declared in default after the 1st of April 2019 the compensation cap is £85,000.00 per person, per advisor.
Further information:
Oakwood Solicitors: Online Trading Claims.
WHAT TO DO NEXT
If you have experienced great financial and phycological harm due to online trading, you may be entitled to compensation. Get in touch today for a no-obligation consultation.
Choose one of the methods on the right-hand side of this page or call us on 0113 486 2442 to find out how we can help you.
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Stephanie Walker joined Oakwood Solicitors in October 2016. Stephanie is Deputy Head of the Finance Litigation Team and works closely with the Head of the Department.
In July 2022 Stephanie assumed…
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