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

Darius McDermott: Asia's broadening investment story

Darius McDermott: Asia's broadening investment story

Fund managers have a dilemma

Darius McDermott
clock 21 October 2026 • 5 min read
China's historic move away from coal shows why investors need to keep digging

China's historic move away from coal shows why investors need to keep digging

'A key challenge for investors is to identify the pockets of genuine innovation'

Xin-Yao Ng
clock 19 October 2026 • 4 min read
Investors yet to stuff ISA allowances as government plays down spectacle despite 'tough' Budget

Investors yet to stuff ISA allowances as government plays down spectacle despite 'tough' Budget

Platform activity stable

Jack Roach
clock 19 October 2026 • 4 min read