“Frankly, this is a minefield and advisers might be prudent if they start maintaining a level of information from their clients to demonstrate good practice and protect themselves from future allegations of mis-selling.”
Quilter's Cassidy adds that clients want to know the impact of their investments on the world around them.
In recognition of this, Quilter has altered its advice process so that every client sees ESG ratings in their portfolio and is placed in one of four categories when it comes to ESG.
She adds: “I expect we will see more and more firms do the same. Clients want to talk about ESG and understand the role their investments are having, and while this may not change their decisions, it is vital that they are informed and their preferences are taken into account.”
Ima Jackson-Obot is deputy features editor of FTAdviser
