Rathbones shares slide on outcome of FCA engagement, review

(Sharecast News) - Rathbones shares were sliding on Tuesday after it said a skilled person review following engagement with the Financial Conduct Authority had identified areas for improvement in its UK Wealth Management business, including the implementation and embedding of Consumer Duty and aspects of compliance, oversight and assurance.

The FTSE 250 wealth manager said it would carry out a two-year programme to address the review's recommendations and conduct a targeted review of some clients to assess whether they had received good outcomes.

It also announced a voluntary pause of up to 12 months on onboarding new enhanced due diligence clients, and a pause on accepting inflows into general investment accounts from some existing EDD clients, affecting about 4,700 clients, or 4% of the total.

Rathbones said it expected related costs of �60m net of expected insurance recoveries over two years, while ceasing investment management fees on cash balances from 1 July is expected to reduce 2026 underlying pre-tax profit by about �9m.

"We are committed to operating to the highest standards on behalf of our clients," said chief executive Jonathan Sorrell.

Rathbones separately appointed Angela Seymour-Jackson and Kathryn Purves as independent non-executive directors, subject to regulatory approval, with Purves joining from 1 July and Seymour-Jackson from 1 October.

Chair Clive Bannister said they would bring "extensive experience across financial services, with deep expertise in commercial, governance, risk oversight and leadership across listed and private equity-backed businesses".

At 0909 BST, shares in Rathbones Group were down 25.98% at 1,643.01p.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate