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

Partner Insight: Debt, deficits, and market resilience: Is your portfolio prepared?

Partner Insight: Debt, deficits, and market resilience: Is your portfolio prepared?

The world is awash in debt. In the US, government borrowing has surged past 100% of GDP, and the fiscal deficit is at a level typically seen in wartime. Other major economies are in similar situations. So, what does this deluge of debt mean for markets?

Orbis Investments
clock 22 May 2025 • 5 min read
Evelyn Partners launches Index MPS range into IFA market

Evelyn Partners launches Index MPS range into IFA market

Five risk-rated portfolios to help cost-conscious investors

Jenna Brown
clock 20 May 2025 • 1 min read
Three Invesco funds fail to deliver value to investors

Three Invesco funds fail to deliver value to investors

Manager's annual assessment found some poor performance

clock 14 May 2025 • 2 min read