Due diligence: what you need to know to appease the FSA

Laura Miller
clock

Advisers need to look at the product first and the client second when they are doing due diligence to meet the "very high" standards the Financial Services Authority (FSA) expects, according to Regulatory Legal, a law firm specialising in financial services regulation.

Speaking at a recent event on due diligence, the law firm, which acts on behalf of thousands of clients who claim they were mis-sold investments, warned advisers against over-reliance on product promotions. Advisers must have a clear "narrative" in place to explain why they chose certain investments in case they find themselves quizzed by the FSA or the courts, the law firm said. "Advisers do a lot of risk profiling on the client but many don't actually look at the product. It should be the product first," said Gareth Fatchett, (pictured) partner at the firm. "The FSA and a court w...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Trump, Modi and US-India trade tensions – who cares?

Trump, Modi and US-India trade tensions – who cares?

A bottom-up approach to finding hidden gems

Gabriel Sacks
clock 02 January 2026 • 4 min read
2026: Year of the racehorse or workhorse?

2026: Year of the racehorse or workhorse?

'Every year brings its challenges, and 2026 will be no exception'

Russell Andrews
clock 02 January 2026 • 4 min read
Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Will continue to be led by current management team

Patrick Brusnahan
clock 23 December 2025 • 2 min read