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...

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 Regulation

FCA's data reporting cuts: 'A start but fairly low hanging fruit'

FCA's data reporting cuts: 'A start but fairly low hanging fruit'

Impact is yet to be determined but a positive step, commentators say

Isabel Baxter
clock 29 April 2025 • 4 min read
FCA proposes to cut down on data reporting for firms

FCA proposes to cut down on data reporting for firms

Part of regulator’s programme to ‘reduce burden’

Isabel Baxter
clock 16 April 2025 • 2 min read
FCA pumps £3.7m into advice/guidance boundary review work

FCA pumps £3.7m into advice/guidance boundary review work

Come as the regulator proposes to increase fees by 2.5%

Isabel Baxter
clock 08 April 2025 • 3 min read