Investment documentation is usually replete with disclaimers and risk warnings, varying from the basic "value may go up or down" and "capital is at risk" to the esoteric.
Where there is fault, seeking legal advice swiftly and with full information will improve the investor's prospects in the long run
Although legitimate investments may fail on a no-fault basis, in certain scenarios investors may be able to recover their losses from the players involved.
Investors may look to one or more of their own broker or financial adviser, the investment company, issuer, the professional advisers (such as accountants and auditors), fund or asset managers, the underwriter, sponsor or arranging banks involved in the instrument and/or third-party "bad actors" who have played a part in the investment's failure.
The starting point for any investor considering potential claims in relation to a failed investment is to identify what went wrong. Some typical categories that lend themselves to claims to recover losses include:
