FCA's consolidation review: 'There's no shortcut on good due diligence'

Will consider if more PE due diligence needs to be done

Isabel Baxter
clock • 3 min read

As the Financial Conduct Authority (FCA) tightens its focus on consolidation and good outcomes for customers, there is “no shortcut on doing good due diligence” when it comes to mergers and acquisitions (M&A) in the advice space, a Macfarlanes partner has told Professional Adviser.

Last October, the watchdog unveiled that it would be reviewing consolidation in advice, with both buyers and sellers set to come under scrutiny. FCA head of department for advisers, wealth and pensions Nick Hulme set out that the regulator was expecting to ask questions around whether firms are "wearing the Consumer Duty hat" at all stages, including deal structure, deal signing and implementation. Hulme has told PA that its review into consolidation in financial advice was initially spurred by industry concerns. Law firm Macfarlanes partner in its financial service regulation group A...

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