628A.030 - Liability of financial planner. - Nevada Statutes

628A.030  Liability of financial planner.

      1.  If loss results from following a financial planner’s advice under any of the circumstances listed in subsection 2, the client may recover from the financial planner in a civil action the amount of the economic loss and all costs of litigation and attorney’s fees.

      2.  The circumstances giving rise to liability of a financial planner are that the financial planner:

      (a) Violated any element of his or her fiduciary duty;

      (b) Was grossly negligent in selecting the course of action advised, in the light of all the client’s circumstances known to the financial planner; or

      (c) Violated any law of this State in recommending the investment or service.

      (Added to NRS by 1993, 1372)

      NRS 628A.040  Financial planner required to maintain insurance for liability or surety bond.  A financial planner shall maintain insurance covering liability for errors or omissions, or a surety bond to compensate clients for losses actionable pursuant to this chapter, in an amount of $1,000,000 or more.

      (Added to NRS by 1993, 1372)