When the client relies on the financial planner's recommendations and suffers a loss, the financial planner can be sued for:

Question

Quizplus · Accepted Answer

When a client relies on a financial planner's recommendations and suffers a loss, the financial planner can be sued for negligence. Negligence claims arise if a financial planner fails to exercise adequate care, skill, or diligence in providing advice or making recommendations to clients. This can result in the client suffering financial harm, which could give rise to a claim for damages. Libel, battery, and nuisance are other types of legal claims that would not be relevant in this context.

When the Client Relies on the Financial Planner's Recommendations and Suffers