Investment losses do not automatically entitle you to compensation. A claim may, however, have good prospects if a bank, adviser or asset manager breached a specific obligation and thereby caused loss. The first question is which service you had: execution only, investment advice or asset management. After that come the agreed level of risk, the error made and a comparison with the situation without that error.
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Written by Onur Arslan, attorney at Arslan Advocaten. Registered in the specialisation register of the Netherlands Bar for employment law and personal injury. Last updated: 17 September 2026.
Keep your agreement, client profile, advice reports and transaction overviews. Do not change an investment strategy solely because of a pending legal complaint; the financial consequences of a change require a separate assessment. This article is about investigating liability and building a claim.
Price losses and legally recoverable loss
Investing involves risks. Values can fall because of market developments, interest rates, company results or a lack of marketability. Even a carefully managed portfolio can suffer losses. A negative outcome therefore does not prove that the service provider acted carelessly.
What is legally relevant is, for example, that a product did not match your known circumstances, that a clear mandate was exceeded or that a paid instruction was carried out incorrectly. Incorrect or missing information may also play a role. The error must be linked specifically to the service and the circumstances at that time.
Next, it must be established what loss that error caused. If the market would also have fallen with a suitable portfolio, the entire loss is not necessarily recoverable. The comparison with a realistic alternative is therefore an essential part of the case.
Which investment service did you use?
| Service | Who usually makes the decisions |
|---|---|
| Execution only | You give the instructions yourself and in principle choose the investments |
| Investment advice | The adviser makes personal recommendations and you decide whether to follow them |
| Asset management | The manager decides within the agreed mandate and profile |
The name on the website is not the only point of reference. Examine both the agreement and the service actually provided. A personal recommendation about a specific instrument may be assessed differently in law from general market information. At the same time, a newsletter does not automatically turn an execution-only relationship into an advisory relationship.
Also check which legal entity provided the service. A platform, fund manager, custodian and adviser have different tasks. A claim against the wrong party can cause costly delays. For each complaint, note who, in your view, should have acted and on the basis of which arrangement.
Execution only means your own choices, but not an absence of obligations
With execution only, you are in principle responsible for your own investment decisions. The provider does not automatically give personal advice and is not necessarily required to keep checking every position against your overall financial situation. However, relevant rules continue to apply, including those on information, order execution and, where applicable, appropriateness.
For certain services and products, knowledge and experience must be assessed. There are also statutory exceptions, for example under certain conditions for certain non-complex instruments. The product and the precise service therefore determine which test was mandatory. A general questionnaire must be assessed in the context in which it was used.
In Kifid 2026-0119, Kifid, the Dutch Financial Services Complaints Tribunal, rejected a complaint about an execution-only platform, turbos and the appropriateness test. The committee made clear that this relationship did not involve the same broad suitability assessment as advice or management. The ruling does not exempt brokers from all obligations.
Suitability in investment advice and asset management
With advice and management, the service provider must gather relevant information to assess what is suitable. Objectives, risk tolerance, financial position, capacity to bear losses, knowledge and experience all play a role in this. The client profile must be more than an administrative tick box.
An objective such as supplementing a pension may call for different attention than investing money that can be spared for a long time. A short horizon or limited loss capacity can affect the suitability of a risky or hard-to-sell product. What matters is how the information fits together, not a single isolated answer.
You must provide correct and complete information yourself. However, the service provider may not simply rely on data if it is clear that they are outdated, contradictory or incomplete. In a complaint, explain which information was known and why, in your view, it should have led to different advice.
A risk profile that does not match the portfolio
A profile with labels such as defensive or neutral only has meaning in combination with the agreed allocation. Examine the spread across types of investment, concentration risk, currency, leverage and marketability. Two portfolios with the same label may carry substantially different risks.
In asset management, the mandate is important. Which bandwidths were agreed? Was the manager allowed to deviate temporarily? Which information were you supposed to receive? A deviation is not automatically culpable if it falls within clear arrangements and appropriate circumstances, but it does need to be examined.
Compare the portfolio at relevant moments with the profile that applied at the time. A one-off spike caused by price movements is not the same as a structural, impermissible concentration. Transaction data and periodic reports help determine whether the manager acted in time and in accordance with his instructions.
Insufficient explanation of complex or illiquid products
Some products carry risks that an investor cannot infer from the name or a return percentage alone. Think of leverage, conditional repayment, limited exit options or dependence on a single issuer. The information and warnings provided must suit the product and the service.
A signature under general terms and conditions does not automatically answer the question of whether essential features were explained in an understandable way. At the same time, clear information may carry considerable weight if you claim that you were unaware of a known product risk. So also collect brochures and key information documents from the relevant period.
Make the complaint specific. Which feature was missing from the explanation? Why was it important for your decision? Would you not have bought the product if you had been given correct information, or only for a smaller amount? These questions link the duty to inform to the possible amount of loss.
Not every market development requires a personal warning
In an execution-only relationship, the bank does not necessarily have a general duty to actively inform you about every market development or change in marketability. The agreement and specific information obligations do remain relevant. A complaint must therefore be linked to a specific standard or commitment.
Kifid 2026-0395 concerned a fund in which trading had been suspended because of sanctions. The committee rejected the complaint about active information and the value shown, on the basis of the execution-only relationship concerned and the valuation information available.
The lesson for a claim is that the cause of the lack of marketability and the provider’s actual options must also be examined. A provider cannot always open a market or create a current price. It can, however, be assessed whether it complied with its own information and execution obligations.
Order errors and platform outages
An order may be processed incorrectly, executed late or not be placed at all because of an outage. Whether that leads to liability depends on, among other things, the instruction, the terms and conditions, the technical events and the applicable execution rules. Not every price movement between entry and execution is an error.
Keep times, order confirmations, error messages and messages to the helpdesk. Note which order type you used and which instruction you actually gave. A limit order carries different execution expectations from an order without a price limit. Market conditions and available liquidity may also be decisive.
For loss, it must be plausible which transaction would have been executed without the error and on what realistic terms. The most favourable price of that day chosen with hindsight is not automatically the right benchmark. If necessary, ask for a technical explanation and the relevant order data before you settle on an amount.
How is investment loss calculated?
The main idea is a comparison between your actual financial position and the position had the provider acted with due care. That may be a suitable alternative portfolio, not purchasing a product, or a correctly executed order. Which comparison is appropriate follows from the error established.
Include deposits, withdrawals, income, costs and compensation received. Compare the same period and the same starting capital. With long-running portfolios, a simple comparison of start and end values may be misleading because interim cash flows affect the return.
Benefits that are sufficiently connected with the same event may also be relevant. You cannot simply select only the loss-making transactions and leave related gains out of the picture. Have a verifiable calculation drawn up, with clear assumptions and, where necessary, alternative scenarios.
A fictitious example of an appropriate comparison
A client has a conservative objective and cannot bear a large loss. Nevertheless, the manager invests a considerable part of the assets in a single high-risk issuer, outside the agreed mandate. After that issuer runs into problems, the portfolio falls sharply. The client wants the full difference from the original investment back.
First it must be established that the concentration really was contrary to the instructions and had not been knowingly and appropriately instructed by the client. This is followed by a comparison with a portfolio that would have stayed within the mandate. If that portfolio would also have suffered some market loss in the same period, this may affect the calculation of the loss.
Conversely, a demonstrably missed return may be relevant where an error meant that an instructed investment was not made. In that case too, the alternative must be realistic and substantiated. This example shows why a legal complaint and a financial calculation must be developed together.
Which pieces of evidence are important?
- The agreement and the versions of the terms and conditions that applied during the disputed period.
- The original client profile and later changes, with their date and reason.
- Personal advice, meeting notes and product information from the relevant period.
- Complete portfolio and transaction overviews, including deposits and withdrawals.
- Complaints, helpdesk messages, order notifications and responses from the service provider.
- A substantiated description of your objective, loss capacity and the alleged error.
Request missing documents in a targeted way. A request for all data about one piece of advice or one order may be more practical than an unlimited request for every internal file. Keep original exports and note when you received them. This helps if a dispute later arises about amended overviews.
Your own responsibility and mitigating loss
Your experience, the information you provided and whether you heeded warnings may influence the outcome. An experienced investor who knowingly departs from advice is in a different position from a client who relies on incorrect personal advice. A signature alone does not decide that question, but it may form part of the evidence.
After discovering a possible error, you may be expected to consider reasonable measures to limit further loss. That does not automatically mean that you must sell everything immediately. The financial consequences and uncertainties of a change can be considerable.
Record which information you receive and which decisions you take. If necessary, seek independent financial advice on the portfolio and legal advice on the claim. The decision to hold or change a position should not be confused with an acknowledgement that the earlier service was correct.
Complaining and keeping track of deadlines
Report a suspected error as soon as you can describe it with sufficient specificity. In the case of defective performance, the duty to complain under Article 6:89 of the Dutch Civil Code (BW) may be relevant. Whether you complained in time depends on the circumstances, including what you could understand and what disadvantage the delay causes the service provider.
Limitation is a separate question. The date of the first loss is not automatically the only relevant date for every claim. Awareness of the loss and of the liable party, the legal basis and any acts interrupting the limitation period must be examined. With an old file, do not wait for a fully completed loss calculation before seeking advice.
Kifid also has its own deadlines and rules on jurisdiction. A binding ruling or a settlement agreement may restrict later steps. So read not only the amount offered, but also the description of the dispute and any final discharge.
Kifid, the courts or a settlement
For consumers, Kifid may be accessible if the financial service provider is affiliated and the complaint falls within its rules. The internal complaints procedure generally comes first. Check whether the chosen procedure is binding and what appeal options exist; not every ruling can be reviewed again without limit.
Court proceedings may be appropriate where the dispute is substantial, special evidential measures are needed or Kifid does not offer access. This must be weighed against costs and litigation risks. A realistic assessment also takes into account the prospects of recovery and the quality of the loss calculation.
A settlement can limit uncertainty. Make sure it is clear which products, periods and claims are being settled. With a partial solution, it must be recorded explicitly which elements remain open. An oral reservation may not provide sufficient clarity if the written text is much broader.
Assess the advice as at the moment it was given
A portfolio may turn out unfavourably with hindsight while the original advice was nevertheless suitable in view of the circumstances known at the time. Conversely, a temporary positive return cannot in itself justify unsuitable advice. So record which information was available on the date of the advice: your income, buffer, experience, objective, investment horizon and need to withdraw money in the interim.
Changes during the relationship are also relevant. Did you report that you wanted to stop working earlier or needed the money for a home? Keep that message and the reply. Then examine whether the agreed service required a reassessment and what the service provider did with it. With a one-off engagement, do not necessarily expect the same aftercare as with ongoing asset management.
Also compare the documents you signed with the explanation you actually received. A signature under a risk profile is an important fact, but does not automatically answer every question about how that profile was drawn up. State specifically which information you believe was recorded incorrectly and what evidence supports this. Merely saying afterwards that you wanted less risk is usually not enough to reconstruct the entire advisory relationship.
Frequently asked questions about investment losses
Can I recover every loss from my bank?
No. Normal investment risk is in principle borne by the investor. A claim requires a specific error, with loss caused by it. The nature of the service and the agreed level of risk are important starting points.
Does an execution-only provider have no duty of care at all?
That conclusion goes too far. The obligations are more limited than, and different from, those for advice or management, but rules on, for example, information, execution and, where applicable, appropriateness remain relevant. The precise combination of product and service must be examined.
Is a defensive profile a guarantee that my capital will stay the same?
No. A defensive portfolio can also fall in value. It must, however, be checked which allocation was agreed and whether the actual investments fitted it. A label without an examination of the underlying risks is insufficient for a finding of liability.
Do I have to sell my investments to be able to submit a claim?
Not automatically. The legal complaint and the financial decision must be assessed separately. Record possible loss-mitigation measures and seek appropriate advice on the consequences of holding or selling. This article does not provide personal investment advice.
Can I also complain about unclear costs?
Yes. Examine which costs were agreed, which information was provided and what was actually charged. A dispute about costs may have an independent legal basis, even if the investments were profitable. Enclose the relevant overviews and arrangements.
How does Arslan Advocaten assess an investment case?
Arslan Advocaten can examine the engagement, the duty of care, your evidential position and the possible basis for a damages claim. It is then discussed whether a complaint, a settlement or proceedings is appropriate and which additional financial calculation is needed. Send the agreement, the profile and the most important overviews; costs are discussed in advance.
Read more on this topic
- A bank’s duty of care: when can you claim compensation?
- Wwft investigation by your bank: how do you answer questions about your money?
- Excessive lending and the duty of care with an overly large loan
Sources and legal basis
- Kifid 2026-0119 on execution only and appropriateness tests.
- Kifid 2026-0395 on information and valuation in execution only.
- Kifid rules and articles of association.
Sources checked on 16 September 2026. The applicable rules under the Financial Supervision Act (Wft) and MiFID, the agreement and the civil law rules on liability must be established for each service and period.
