Claims for Mis-selling shares

If you are a private client of a stockbroker or IFA, a claim for mis-selling can arise if you have suffered loss as a result of negligent advice you have received from the stockbroker or IFA. The advice could be negligent in a number of ways:

1. You could have been wrongly categorized as to the level of risk that you were prepared to take, when you agreed to buy shares.
2. The stockbroker did not properly take care to find out your true net-worth and risk appetite
3. The Stockbroker did not have regard to your age and in particular your ability to earn back capital loss?
4. The shares were not suitable for an investor of your risk profile
5. If you were a low risk investor was there liquidity in the shares when you bought them? If there was not, then they would be unsuitable as they would be considered high risk

It is likely that if your case falls within these parameters then you will have a claim against the stockbroking firm. Normally the first claim would be made to the Financial Ombudsman Service ( "FOS"). The maximum amount that can be claimed is £100,000. The procedure is in the nature of a paper hearing and your claim is submitted to the Ombudsman for determination. The stockbroker is allowed to put in a defence and the Ombudsman may seek clarification further to the points raised in correspondence. The Ombudsman would make a ruling based upon the balance of probabilities, i.e. who would be more likely to win in a court of the law.

If the stockbroker is unable to satisfy the award or the stockbroking firm is insolvent as has become increasingly common, then the claim is made to the Financial Services Compensation Scheme ("FSCS"), once the stockbroker has been declared in default by the FSCS. The Scheme will consider individual claims and again a client of a stockbroker has to prove that stockbroker was negligent. The maximum amount that can be recovered is £50,000.

Lee Lanes Solicitors will act for you in respect of either or both procedures of your claim, depending upon the state of the stockbroker.

Should you wish us to act for you on a NO WIN NO FEE/contingency fee basis please see below set out in detail the basis upon which we will act, what we shall do for you, what is expected of you and the basis of the payment of the fee.

The work to be covered by fee/our retainer agreement is as follows:

• to consider the results of the questionnaire completed by you, together with all other paperwork relating to your potential claim that has either already been or will be provided;
• to advise you of any claim you may have and against whom;
• to assist you in formulating and making any such claim;
• to advise you on the value of your potential claim under the terms of the Financial Services Compensation Scheme ("FSCS") Rules;
• to act on your behalf in pursuing such claim either through the Financial Ombudsman Service, if the company is still trading or through the FSCS ( the Financial Services Compensation Scheme) if the company is has been declared in default. However, we will not undertake any litigation against the stockbroker, any of its directors or the FSCS under the terms of our engagement.

You agree to pay us a fee equivalent to 17.5% + VAT of the amount received by you or on your behalf in relation to any such claim.

Once you have completed the necessary forms, you will be notified of a person to contact who will handle your individual case. Mr Jonathan Jacob, who is a designated member of LeeLanes Solicitors LLP, will be the person to whom any complaint regarding the quality of our services should be made and should a complaint arise he will endeavour to deal with your complaint promptly.

It is imperative that you co-operate with us and respond to any questions asked by us as this will be essential to making the claim.

To allow us to proceed with your claim you need to become a client and we are legally required to have on record:-

1. A signed acceptance of terms, we will need you to sign an engagement letter ref L4A, which can be downloaded and printed from this web site (or please email/call the office for one to be sent in the post); and
2. We require a certified copy of any government issued photo ID. This could be a passport, a photocard driving licence or even a bus pass. We also require a utility bill issued in the last three months showing your current address. Both need to be certified as true copies by an Accountant, Solicitor, Bank Manager or similar professional.
3. A questionnaire duly completed by you. This can be down loaded from the web site or please email /or call the office for one to be sent in the post.

Please click here to Download L4A/Engagement Letter

Please click here to Download Questionnaire