Investments Turned Foul.....? What Can You Do?

A group of ex-Premier League footballers have been in the press recently talking about failed investments and the tax burden they are facing as a result.

Background

The V11 Group is a campaign group formed of 11 footballers who had made investments via Kingsbridge Asset Management in the 1990 – 2000s which have resulted in significant losses for the investors.

It is thought up to 200 footballers are affected by the investments made, although Kingsbridge Asset Management deny any wrong doing.

In a programme, aired on the BBC on 2 September 2025, it is alleged that many investors lost their homes and were made bankrupt as a result of the investments.

In addition, the footballers allege they are also being pursued by His Majesty’s Revenue and Customs (“HMRC”) for millions more in unpaid tax arising from the initial investments.

This leads to questions regarding what options may be open to you if you suffer losses as a result of poor investments?  Is there any recourse against your Independant Financial Adviser ("IFA")??

Professional Negligence Claims

A professional negligence claim in England is a legal action taken against a professional who has failed to perform their duties to the standard expected of a reasonably competent practitioner in their field, resulting in loss or damage to the claimant. Professionals are held to a higher standard because they represent themselves as having specialist skills.

Professional negligence in the context of a claim against an IFA refers to a breach of the duty of care owed by the IFA to their client. This duty requires the IFA to exercise reasonable skill and care in providing financial advice. The standard of care is typically assessed by considering whether the IFA acted as a reasonably competent professional in their field would have done under similar circumstances. 

This includes compliance with regulatory requirements, which in most cases involving an IFA are laid down by the Financial Conduct Authority (“FCA”).

Professional negligence claims against IFAs may arise in both contract and tort. The contractual relationship typically governs the scope of the IFA’s obligations, but a concurrent duty in tort may also exist. 

This tortious duty is based on the IFA’s responsibility to the client and the client’s reliance on the IFA’s expertise. The duty in tort generally runs parallel with the contractual duty, meaning it does not impose additional obligations on the IFA but may have different implications for both client and the IFA on issues such as limitation periods and remoteness of damage.

To succeed in a professional negligence claim, the claimant must establish that:

• the IFA owed them a duty of care; and
• that the IFA breached that duty of care;
• and that the breach was causative of financial loss that is not too remote; and 
• the loss suffered is quantifiable.

Insurance

Along with most operations that provide a professional service to the public, it is essential your “IFA” has adequate Professional Indemnity (“PI”) Insurance.

PI insurance is essential because it provides financial cover for the adviser in the event that they give wrong, unsuitable or negligent advice that causes clients to suffer a loss or an unexpected tax liability.

If an IFA does not have PI insurance and is found liable for giving advice that causes loss to the client, the client may be unable to recover adequate compensation relevant to their losses.

This is particularly an issue where the adviser is in such a financial position that they cannot meet the claim from their own resources. 

In contrast, an IFA with PI insurance has a policy in place designed to pay out successful claims, meaning clients are far more likely to be compensated if things go wrong.

In England, PI insurance is, for many regulated advisers, a regulatory requirement. It acts as a safety net for clients, helping to ensure that, even in worst-case scenarios, there is a financial mechanism to provide redress. 

Funding

Undertaking litigation can be a costly and time-consuming process and claims such as professional negligence can be difficult to pursue without engaging a legal professional to assist your claim.

One of the key blockers to such claims, particularly in the case of professional negligence claims against IFAs, is that they have caused such significant loss that the claimant has insufficient funds to be able to commence a claim.

In the case of the V11 group by way of example, it has been reported that many of the affected footballers are indebted to HMRC to the tune of hundreds of thousands of pounds, meaning that whilst they may be able to demonstrate, as they have alleged, they have incurred a loss due to the negligence of their IFA, they are simply unable to take the necessary legal action to be able to seek to recover such losses.

There are numerous litigation funding options open to such potential claimants however it is not a case of one size fits all.

And not all solicitors will be willing, or able, to offer funding on all claims or on terms which satisfy the client’s original requests.

A conditional fee agreement (“CFA”), also known as a “no win, no fee” arrangement, may be suitable for some claimants, but not others.

Some firms may offer a type of CFA known as a “Discounted CFA” which is where fees are invoiced and paid through the life cycle of the claim at a discounted rate, with a higher rate, to incorporate a success fee, being due upon the successful conclusion of the claim.

The potential claim the footballers may have against their IFAs is, for obvious reasons, high profile. It is the type of claim, given the potential claimants, that may attract third party funders to finance the litigation given the possibility of decent press coverage. 

Third party funding is a type of funding where a third party pays the legal professional’s invoices through the life cycle of the claim with an agreed return, such as a percentage of damages won, from the client at the conclusion of the claim.

It is also important to mention insurance in the context of funding, as many potential claimants may have Before The Event (“BTE”) Insurance, which is in place before any dispute arises and may cover potential legal fees.

If no BTE insurance is in place, then it is possible to obtain After The Event (“ATE”) Insurance, which is a specific policy to cover adverse costs if the claim is unsuccessful; often this comes with a deferred premium which is payable only if the claim is successful.

Alternatives to Funding

Formal litigation is not the only option for resolution of a dispute with an IFA and it is always worth considering potentially less costly and more efficient alternate dispute resolution (“ADR”) alternatives before embarking on litigation.

The Financial Ombudsman Service (“FOS”) is the most common route for consumer complaints against IFAs. Key features include:

• Free for consumers
• Independent and impartial
• Covers complaints about mis-selling, poor advice, and unfair treatment
• Decisions are binding on the business if accepted by the consumer
• Typically resolves cases within 90 days of receiving a complete file

You can complain to the FOS if:

• The IFA is regulated by the FCA
• You’ve first raised the issue with the IFA and received a final response (or 8 weeks have passed)

Outside the FOS, there are private ADR methods which may be suitable to resolve the dispute:

• Mediation: this is where a neutral third party – the mediator – helps both sides to reach a binding voluntary settlement agreement;
• Arbitration: a form of ADR where parties agree to resolve their dispute outside of court by appointing a neutral third party, the arbitrator, who reaches a binding decision;
• Expert Determination: A subject-matter expert decides upon technical issues.

Comment

Garon Anthony, Financial Disputes Partner, comments:

“The recent press coverage regarding the V11 group of professional footballers, serves as a timely reminder to all investors, on whatever scale, to ensure that they carry out due diligence in relation to their investments and their IFA.

“Investors need to be clear in communicating their appetite to risk to their IFA and ensure they are happy their instructions in that regard have been properly understood and implemented.  

“Investors must remember to carry out responsible checks in relation to reputation and insurance and be comfortable with the individuals, or companies, they are entrusting their investments with.”

Steve Beahan, Litigation Partner comments:

“Loss of investments can be an incredibly worrying time for anyone, particularly when you have invested lifelong earnings with a view to a comfortable lifestyle in retirement.

“To be in a situation where you have limited funds to be able to peruse those you may hold accountable for those losses is distressing however conversations should be had with professionals to guide you in the potential recovery process, which must always include a conversation about the appropriate funding method which may be available to assist you in this pursuit.”