Acquisition due diligence and redress risk assessment

Discover how TCC Group helped a client assess potential redress liabilities during the acquisition of an independent financial adviser, providing the insight and assurance needed to support pricing, deal negotiations and strategic decision-making.

The challenge

A client negotiating the acquisition of an independent financial adviser (IFA) needed clear visibility into potential back-book redress liabilities. While the firm possessed a large portfolio of client files, conducting a manual review of every single case was operationally and commercially impractical.

Without a reliable estimate of legacy exposure, the client could not establish a fair purchase price or negotiate the deal confidently. They required independent assurance to identify data gaps and quantify risk within tight transactional timeframes.

Our approach

TCC developed a structured, pragmatic sampling methodology, selecting a targeted sample of 30 cases that balanced high-risk factors with a representative spread of the portfolio. We prioritised cases based on key risk indicators, including transfer values, customer ages and scheme dates.

To overcome the challenge of incomplete point-of-sale documentation, we utilised data from our extensive library of similar projects and drawing on our deep expertise with comparable financial advice schemes to reconstruct missing details and ensure thorough analysis.

Outcomes

Our risk-prioritised approach enabled the client to accurately quantify potential redress liabilities without the cost or delay of a full portfolio audit. This critical assessment identified legacy file gaps and established a defensible, evidence-backed risk model.

Armed with these insights, the client gained the necessary assurance to proceed with deal negotiations. This analytical support allowed them to make informed strategic decisions and negotiate the final transaction pricing with high confidence.

Evidence

The engagement was evidenced by the successful assessment and reporting of a representative 30-case sample, which identified key data gaps and quantified liabilities to support transaction negotiations.

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Wealth Management & Financial AdviceTCC helps wealth managers, financial advisers, networks, platforms and consolidators strengthen compliance, evidence customer outcomes and manage regulatory risk. Every engagement is designed to deliver practical improvements, stronger governance and regulator-ready evidence. For more than 25 years, we have helped FCA-regulated firms navigate regulatory change, supervisory reviews and business growth.

Acquisition due diligence

The challenge

Our approach

Outcomes

Evidence

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