To what extent is the banker liable when the latter provides advice and information to his customer?

Thanks for invitation,

As a matter of fact, there is no harm regarding verbale advices which are not contradicted with the regulations except for losing trust between the client and bank. 

Bankers/Financial Institutions are master's who have lots of loopholes to escape from liability finally. They have teams who are experts in brainstorming for finding loopholes. Unless until the customer is so smart to read between lines all terms and conditions which is invisible with so short fonts on agreement and application and changes things to his advantage, which happens rarely.

 

The banker will never be liable for any advice extended to customers on a short notice; rather the Bank (the Financial Institution) will be liable throughout its existence. It is the responsibility of the ‘’Bank’’ to educate, extend training, and to have proper management skillets, onboard Compliance and Risk Management team with legal backing to absorb the aftermaths.

 

Reality is the bank will have some contract clause indemnifying them.

 

If you sign an agreement with the bank for financial advice there is a expectation of some liability. however in the effort to enforce that contract, you will find it is difficult  - they have deep pockets...so it wont be a case of the bank agreeing it was providing bad advise, it will be like "at the time of advise provided this was the base and best option blaa blaa" they will cover there rear end,,.