Can you trust your fundraising advisor? Caroline Black shares key risk factors

With the UK’s fundraising advisory market still largely unregulated, businesses seeking capital must navigate a landscape rife with unclear fees, exaggerated promises and questionable credentials. In a recent article by Raconteur, Caroline Black, Consultant in Business Crime and Corporate Investigations at Gherson Solicitors LLP, commented on the challenges.

“Anyone engaging in high-pressure tactics should be viewed with suspicion”, Caroline advised. “Legitimate advisors will provide clear comprehensive advice and afford time to consider its content before proceeding”.

She further emphasised the need for due diligence in the absence of strong regulatory oversight: “If an opportunity seems too good to be true, it most likely is”. Caroline recommends verifying whether an advisor is FCA-authorised and conducting reference checks and open-source research before committing.

With growing calls for tighter regulation, Caroline’s insights underscore the importance of taking proactive steps. If you require legal advice regarding regulatory risks or potentially fraudulent activity affecting your business, please contact our White Collar Crime team.

Read the full article in Raconteur: “Can You Trust Your Fundraising Advisor?”