Advisers must make clear ESG investing is not chosen for financial returns - lawyer

'Lots of compliance needed'

Hannah Godfrey
clock • 2 min read

Adviser compliance must be “hot” around ESG investing, with advisers warned clients must understand financial performance is not why they are investing in ESG, a lawyer has warned.

When it comes to ESG investing, a client is making an investment decision on factors other than economic performance, and that must be made clear to clients, Michael Cotter, who is consultant solicitor advocate and financial services and litigation lawyer at Setfords Solicitors, has said.  He said non-financial consideration must be highlighted as a potential trade-off, and there was "a lot of compliance" needed to ensure clients understood that. He said: "To be blunt, it all sounds very well and good, but ultimately investors will need to make a decision on whether they're investing ...

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

Talking with… J.P. Morgan Asset Management CEO Patrick Thomson

Talking with… J.P. Morgan Asset Management CEO Patrick Thomson

The series continues as Richard Romer-Lee chats to Patrick Thomson

Richard Romer-Lee
clock 27 November 2024 • 5 min read
UK funds hit by £31.5bn in outflows so far in 2024

UK funds hit by £31.5bn in outflows so far in 2024

Passive UK-domiciled index funds gathered more than £14bn year-to-date

Giovanni Cafaro
clock 26 November 2024 • 3 min read
Lessons from the titans of Spanish football: Taking a long-term view on Europe

Lessons from the titans of Spanish football: Taking a long-term view on Europe

Lessons for investors from Real Madrid and Barcelona

David Walton
clock 25 November 2024 • 4 min read