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

Gangbusters? Why the UK market is not exceptional, yet

Gangbusters? Why the UK market is not exceptional, yet

‘Every market turnaround has to begin somewhere’

Laith Khalaf
clock 22 May 2024 • 4 min read
Navigating the intergenerational wealth shift with tokenisation

Navigating the intergenerational wealth shift with tokenisation

'Already gaining significant traction in fund management'

Stephen Ashurst
clock 21 May 2024 • 3 min read
Future of Investment Festival: Ten key reasons for advisers to attend

Future of Investment Festival: Ten key reasons for advisers to attend

Last call to financial advisers to join us on 5 June

Professional Adviser
clock 21 May 2024 • 2 min read