Professional liability · Financial advisers · Portugal & Spain

Professional indemnity for financial advisers and wealth managers

Investment advice that went wrong, an order executed badly, a structure that did not deliver the expected tax result. Whoever advises on wealth answers for the client’s financial loss — and the insurance requirements depend on each adviser’s regulatory status.

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ASF-registered insurance intermediary · Portugal & Spain · Written response in 48–72 business hours

Reviewed by Hugo Gonçalves, Founder & Risk Management Specialist at Adler & Rochefort · Degree in Business Management (University of Hertfordshire) · Ongoing training at the Chartered Insurance Institute (CII), London.

The profession and where the risk sits

Investment advisers, wealth managers, multi-family offices and financial planners work with clients who entrust them with decisions worth millions. Claims follow the markets: when a portfolio loses value, the client looks at the advice they received.

Suitability — a product or strategy that did not fit the client’s profile.
Execution — orders placed wrongly, late or outside the mandate.
Information — risks, costs or tax effects poorly explained.
Fraud and cyber — false instructions and compromised client data.

Get your free quote

Tell us the essentials and we'll come back to you within 48 to 72 business hours — a careful look at your real exposure takes longer than a generic form.

Ask for a quote — it takes under a minute

Leave just the essentials and we reply within 48–72 working hours. We ask for the rest by email.

What we will ask for your quote

After the first contact we ask for these details by email. If you have them to hand, you can send them now to insurance@adlerrochefort.com.

Name
Date of birth
Full address
Driving licence issue date
Registration number

By sending this form you agree to us using your details to prepare and discuss your quote, in line with our privacy policy. We never sell your data. Adler & Rochefort is a trading name of Ownizo, Unipessoal Lda., registered with the ASF under no. 425591790/3.

ASF-registered insurance brokerEnglish-speaking teamNot tied to one insurerWe handle the claim for youQuote in 48-72 business hours

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Thank you. We'll review your request and reply within 48 to 72 business hours.

What is compulsory in Portugal and in Spain

Portugal

Investment advice requires authorisation or registration with the CMVM, or practice as a tied agent of an authorised firm; capital or guarantee requirements depend on that status and should be confirmed case by case. Anyone distributing insurance — including investment-based life policies — as an insurance intermediary must hold professional liability insurance under the insurance distribution law (Lei n.º 7/2019, transposing Directive (EU) 2016/97).

Spain

Empresas de asesoramiento financiero nacionales must have initial capital of €50,000 or professional liability insurance, a guarantee or equivalent with minimum cover of €1,000,000 per claim and €1,500,000 a year (Real Decreto 813/2023, art. 5.3). Insurance intermediaries have the equivalent obligation under Spain’s insurance distribution law (Real Decreto-ley 3/2020).

What the policy should cover

The services you actually provide — advice, discretionary management, order reception, insurance distribution.
A limit that meets the regulatory minimum and reflects the wealth you advise on.
Clients and jurisdictions — residents of Portugal, Spain and other countries.
Defence costs in client and, where provided, regulatory proceedings.
Crime and cyber as complementary covers.

Common mistakes

Buying the regulatory minimum and ignoring the size of the portfolios advised.
Not declaring services outside the original authorised scope.
Confusing professional indemnity with the D&O of the company’s directors.
Not coordinating the policy with crime cover for payment fraud.

Frequently asked questions

Must a financial adviser in Spain be insured?

Empresas de asesoramiento financiero nacionales must hold initial capital of €50,000 or professional liability insurance (or equivalent guarantee) of at least €1,000,000 per claim and €1,500,000 a year (RD 813/2023, art. 5.3).

And in Portugal?

It depends on status: authorised firm, adviser registered with the CMVM, or tied agent. The applicable requirements should be confirmed with the CMVM. If you also distribute insurance, liability insurance is compulsory under Lei n.º 7/2019.

Does professional indemnity cover market losses?

No. It covers loss caused by an error, omission or negligent advice, not normal market movements.

I work in a multi-family office — does this apply?

Yes, if you provide services to other families. A single-family office serving only its own family has a different exposure, covered on our family office page.