Due diligence loss adjuster: working alongside regulated professions
Regulated professions have a duty of care and information which means they are required to take great care to help their clients as best they can. For this reason, the disputes that arise in cases of breach of due diligence are often complex, and their consequences can be difficult to…
Regulated professions have a duty of care and information which means they are required to take great care to help their clients as best they can. For this reason, the disputes that arise in cases of breach of due diligence are often complex, and their consequences can be difficult to understand. They can include loss of advantages, application of sanctions, or immaterial damages specific to the clients’ work. For both the professionals concerned and their insurers, the priority then becomes analysing the claims and the consequences of the alleged breach, as part of a broader crisis management process.
The different faces of the regulated professions
Regulated professions can be divided into four major families. The work they do is diverse and varied, but all of it is subject to similar regulatory constraints. The four families are:
- Real estate professions: real estate agents, property managers, co-ownership trustees, inspectors, etc.
- Financial professions: chartered accountants and statutory auditors.
- Advisory, financial and insurance professions: wealth management advisers, financial investment advisers, banking intermediaries, insurance agents, brokers, traders, etc.
- Legal professions: civil law notaries, lawyers, bailiffs, court-appointed agents etc.
Whatever field they work in, when members of the regulated professions are accused of breach of due diligence by a third party, they must be able to count on responsive and objective loss adjusting to resolve the dispute as soon as possible.
A thorough loss adjustment for breach of due diligence
When the Civil Liability of the Syndicate, that of the Chartered Accountant or that of the broker of a regulated profession is called into question for lack of diligence, a financial loss adjuster is mandated to carry out an analysis of the faults reproached.
For example, a client challenges his loss adjuster because the tax optimisation transaction he was advised to undertake was refused by the tax authorities. After a complete examination of the contractual relations and the establishment of a causal link, the faults likely to be retained are clearly identified.
Our loss adjuster then examines the claim submitted by the third party and determines whether the loss is justified, i.e. due to a fault committed by the professional.
To take the previous example, it could be shown that the client challenging his loss adjuster did not have sufficient cash flow to complete the proposed financial package… rendering his claim for compensation null and void. Our loss adjuster then carried out an analysis of the remedies available, looking for other parties who might themselves have caused the grievance.
The expertise concludes with a study of the possibilities of recovery, in particular from the tax authorities, in order to reduce (if possible) the quantum of the loss.
Extensive knowledge of the regulated professions
As a leader in France in cases involving the civil liability of regulated professions, Stelliant Loss Adjusting has the experience and expertise to understand the various aspects of this field.
As former legal, auditing, accounting and finance professionals, our financial loss adjusters mobilise all of their knowledge to offer a solution to the claim and end disputes, especially in cases of breaches of due diligence.
Regulated professions can also count on Stelliant Consulting & Risk Management to support them in their problems managing risk, disputes and claims. These consultants handle hundreds of disputes every year and are well-versed in assessment methods and compensation principles, making them able to do a critical analysis of any adverse claim.
key figures
years
of experience
cases
handled each year
loss adjusters
financial risk specialists