Firm and specializes in giving investment advice

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John runs an Accountancy firm and specializes in giving investment advice. Chloe makes an appointment with John to discuss making an investment in a new company involved in oil and gas. John advises her that information in the market suggests that the company is safe and a good investment. Chloe is worried about the risks and benefits involved in investing in the company, but John tells her that "there are no risks - I have been providing specialist business advice like this for 20 years and I'm the best in the business. You will make a large amount of money if you follow my advice". Chloe invests $100,000 in the oil and gas company. However, two weeks later the oil and gas company goes into liquidation and Chloe finds out that she has lost all her money. Chloe is very upset and seeks your advice. Advise Chloe on whether John was negligent in giving her the advice.

 

 

Reference no: EM132313503

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