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

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

FCA takes civil action against Neil Woodford and W4.0 for 'operating without authorisation'

Accused of breaching FSMA

Michael Nelson
clock 08 June 2026 • 2 min read
M&G's PruFund coming to Scottish Widows Platform

M&G's PruFund coming to Scottish Widows Platform

First third-party platform launch

Jen Frost
clock 08 June 2026 • 2 min read
Investors move from cash to US equities as confidence improves

Investors move from cash to US equities as confidence improves

Investment Association figures show

clock 05 June 2026 • 3 min read