Advisers acting as 'barriers' to social investment - research

Carmen Reichman
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Financial advisers are acting as a "barrier" between clients and social investment opportunities due to perceived greater regulatory risk, according to research.

The report, compiled by the Social Investment Research Council, suggests new stringent regulatory rules around investment suitability are deterring advisers from recommending social investments, which they regard as "riskier" than mainstream commercial products. The research, commissioned by City of London Corporation, suggests advisers tend to lean towards liquid investments and are reluctant to recommend investments that have a "lack of a track record in the market". It also claims advisers would always recommend mainstream commercial investments over social investments unless the c...

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