Legal Analysis: Pre-Contractual Misrepresentation in Financial Services, the Client's Legitimate Reliance and Access to Court in the Context of National and European Union Law

This legal analysis examines pre-contractual representations, legitimate reliance, information asymmetry and potential civil liability in the context of financial services and crowdfunding. It considers the interaction between Latvian civil law, civil procedure, Regulation (EU) 2020/1503 and the right of access to a court under Article 6 of the European Convention on Human Rights and Article 92 of the Constitution of Latvia. Particular attention is given to the distinction between the existence of a financing opportunity, representations made during the pre-contractual stage, reasonable reliance by a prospective client, causation, burden of proof and the evidentiary difficulties that may arise when relevant information remains under the control of the service provider. The paper does not presume liability in any individual case; rather, it develops a legal framework for assessing when pre-contractual conduct may become legally relevant and how effective judicial protection can be ensured.