California Civil Code

§ 3372

CIV § 3372 Effective Jan 1, 1995Div. 4 · Title 3 · Part 1 · Ch. 1.5

Statute text

(a)Any person engaged in the business of advising others for compensation as to the advisability of purchasing, holding or selling property for investment and who represents himself or herself to be an expert with respect to investment decisions in such property, or any class of such property, shall be liable to any person to whom such advisory services are furnished for compensation and who is damaged by reason of such person’s reliance upon such services, for the amount of such compensation and for such damages, unless the person rendering such services proves that such services were performed with the due care and skill reasonably to be expected of a person who is such an expert.

(b)For the purposes of this section, the following apply:

(1)A person represents that such person is an “expert” within the meaning of this section if such person represents that he or she is a “financial planner,” “financial adviser,” “financial counselor,” “financial consultant” or an “investment adviser,” “investment counselor” or “investment consultant” or that such person renders “financial planning services,” “financial advisory services,” “financial counseling services,” “financial consulting services” or “investment advisory services,” “investment counseling services” or “investment consulting services” or makes substantially equivalent representations with respect to such person’s business or qualifications.

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Legislative history

Amended by Stats. 1994, Ch. 1010, Sec. 53. Effective January 1, 1995.