Shaw and Partners to Pay $162,000 After Ignoring Email
Shaw and Partners has been directed by AFCA to compensate a client after disregarding an important email instruction. The financial firm must pay $162,000 for the client’s direct financial loss.
Complaint
The complainant held an equities portfolio and a derivatives trading account with Shaw and Partners Limited. He says he confirmed an earlier verbal instruction to his adviser (Mr G), an authorised representative of the financial firm, to close all options positions by email dated 19 June 2017. He has complained that Mr G did not follow this instruction and seeks compensation for his losses.
Shaw and Partners say the 19 June 2017 email was not an instruction to close all positions and exit the options trading strategy. They say the complainant, who was aware of the risks and the nature of the positions held, made all investment decisions. They have refused to pay any compensation to the complainant.
The case manager has already provided a recommendation on these issues in favour of the complainant. Notably, the case manager considered it fair to reduce the compensation award by 20% because the complainant should have been more proactive about ensuring his instruction was being implemented.
Issues and key findings
Were The Findings In The Recommendation Correct?
AFCA is satisfied the findings in the recommendation were substantially correct and are adopted in this determination.
What Has Changed in the New Recommendation?
AFCA does not consider that the complainant contributed to the loss, and therefore believes it is not fair nor reasonable to reduce the compensation award by 20%.
Why Is The Outcome Fair?
It is fair the complainant is compensated for the loss caused by Mr G’s failure to implement instruction in a reasonable timeframe.
Determination
This determination is in favour of the complainant.
The complainant has 30 days to accept the determination. If he accepts the determination,
the financial must, within 28 days of that acceptance, pay:
- $162,139.35 compensation to the complainant for his direct financial loss with interest
- $3,689 compensation for the complainant’s indirect financial loss.
Legal Help After Bad Financial Advice
If you believe you’ve received bad financial advice and would like to discuss your experience with us, reach out to our expert legal team. We are committed to ensuring our clients receive the best possible advice and guidance on their situation, especially in financial matters. You can contact us online, call us at 1300 433 533 or email us at enquiry@fdlegal.com.au.
