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 ...

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