Negligence and Liability of financial advisers (for expatriates) in Spain

TRADITIONALLY in Spain financial and investment advice has been made through banking entities. In general, we can say that the Spanish banks have not done a satisfactory job if we take into account all the scandals they have been part of, relative to toxic and high risk investment products, such as subordinated, preferred shares, convertible bonds, participative quotes, etc. Many of these products have led to their owners to lose all the money invested.

But expatriates, in addition to the incorrect and often malicious advice from banks in Spain, have been also affected by numerous companies and supposed experts in investment and financial advice, many of them of the same nationality as the affected expatriates themselves, who have caused and continue to provoke a multitude of problems.

There are many problems that we have been able to detect in some of these investments marketed to expatriates, such as:

– Sale of high risk investment products, some of them have resulted in the total loss of investment, where the adviser had not properly explained the risks of the product.

– Sale of illegal or useless products: for example some products have the sole purpose of avoiding tax payments (for example, Inheritance Tax), in some cases they are illegal, while in others they do not serve the aim that they are sold for.

– Problems in recovering investments, getting the insurance premium paid: in many cases investments are made in distant countries and in unsafe investments, and when the clients or their heirs try to recover the funds or get paid all kinds of obstacles, such as delayed payments, appear.

– Problems with abusive and hidden commissions, expenses, etc.

-Illegal advisors and financial chiringuitos: the individuals or companies who can act as financial advisors legally in Spain are those stated in  law 47/2007, although there are numerous advisors who are acting illegally in Spain, are not registered with the National Commission of the Stock Market (CNMV), or do not have the requisite Spanish legal guarantees. Some of these investment advice companies are well known among expatriates, but are illegal and dangerous, so much so that the CNMV has published an information guide to prevent against this type of illegal services.


 If you had, have or think you may have a problem with your investments or your financial adviser, contact us and we will help you.


The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.


Carlos Baos (Lawyer)

White & Baos

Tel:+34  966 426 185


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