Buy FTI Consulting Now: Regulatory Storm Fuels APAC Compliance Gold Rush

The world is drowning in red tape—and that's great news for investors. As regulators in the UK and Australia tighten their grip on financial institutions, companies are scrambling to avoid penalties, fines, and reputational disasters. This isn't a fleeting storm; it's a multiyear megatrend. And the firm best positioned to capitalize on it? FTI Consulting (FTI).

Let me be clear: this is a buy signal.

Why Compliance? Why Now?
The UK's Financial Conduct Authority (FCA) and Australia's ASIC are no longer playing nice. Penalties for noncompliance have skyrocketed, with firms like HSBC and Standard Chartered paying billions for AML failures. Meanwhile, ESG reporting mandates, anti-bribery laws, and APRA's stricter prudential rules in Australia are turning compliance into a $100 billion-plus industry. Institutional clients—from banks to insurers—are panicking. They need help, and fast.

Enter FTI Consulting.

The Gossington Edge: A Master of Regulatory Landmines
Mark Gossington's June 2025 appointment as Senior Managing Director in FTI's Risk & Investigations practice isn't just a headhunter's footnote—it's a game-changer. With 25 years at Barclays and Big Four firms, Gossington is the go-to guru for UK and Australian regulatory frameworks. His clients aren't just avoiding fines; they're building bulletproof compliance systems.

Think about it: APRA's new liquidity standards? He's written them. ASIC's ESG reporting requirements? He's decoded them. FTI's clients—whether in Sydney, Singapore, or Mumbai—are paying top dollar for his expertise. And that's just the start.

(Note: FTI has outperformed the index by 12% since Q1 2025, despite broader market volatility.)

The Contrarian Play: Hedge Funds Are Wrong
Here's the kicker: hedge funds are dumping FTI. Why? They're fixated on short-term noise—like a minor client attrition blip in Q4 2024. But they're missing the bigger picture. FTI isn't a cyclical stock; it's a regulatory insurance policy.

(Note: Ownership has dropped from 18% to 7% since Q3 2024, signaling a contrarian opportunity.)

While these funds chase meme stocks or crypto, FTI is quietly expanding its APAC footprint. Remember KordaMentha? The 2012 acquisition that turned FTI into Australia's go-to for turnaround consulting? Today, that platform is the backbone of its compliance work. Pair that with Gossington's network and FTI's 2025 push into ESG advisory, and you've got a machine primed to dominate.

The Bottom Line: Buy FTI—Now
This isn't a “wait-and-see” stock. Regulatory demand is exponential, and FTI's margins are bulletproof. The firm's Q2 earnings will likely show APAC revenue surging 25% YoY, with compliance services driving 40% of growth.

Backtest the performance of FTI Consulting (FTI) when 'Q2 earnings announcements' occur, buying on the earnings release date and holding for 60 trading days, from 2020 to 2025.

Meanwhile, its valuation? A steal. FTI trades at 15x forward earnings—a discount to peers like Accenture (ACN) or Deloitte (which isn't public, but you get the point).

The red tape is here to stay. FTI's got the keys.

Action Item:
Buy FTI at $85, set a target of $110. If you're a long-term investor, set a 5-year target of $150. The compliance gold rush isn't just starting—it's roaring.

This is a now play. Don't let hedge funds' myopia cost you.

Disclosure: This analysis is based on publicly available information. Past performance does not guarantee future results. Consult your financial advisor before making investment decisions.