London, June 16, 2026, 14:03 BST
- Rathbones shares slid about 17% in London after the wealth manager said it would act on findings from a review connected to the Financial Conduct Authority.
- The company expects to book about £60 million in remediation costs over the next two years. The move to cash-fee pricing is seen trimming 2026 underlying profit before tax by a further £9 million.
- Investors are watching for the next test with interim results due July 29, 2026.
Rathbones Group PLC shares slid Tuesday, quoted at 1,614p to sell and 1,620p on the buy side from Barclays, down 334p or 17.11% at 13:45 in London. The stock’s drop was sharp against muted moves in the wider market—FTSE 250 dipped 0.02%, while FTSE 100 gained. Selling picked up after Rathbones said a Skilled Person Review found “areas for improvement” in its UK Wealth Management business, pointing to compliance systems and Consumer Duty issues. Barclays Smart Investor
Rathbones shares fell after the firm flagged two issues investors track—client inflows and clarity on earnings. The company will stop taking new clients who need Enhanced Due Diligence, a process for higher-risk accounts, for as long as a year. Those clients brought in about £370 million in gross inflows over the past year. On top of that, Rathbones will bar new money from going into general investment accounts for a group of existing EDD clients—roughly 4,700 customers, or about 4% of its 119,000 clients. Those accounts saw about £530 million of gross inflows in the same period. Gross inflows are total money in, before outflows. TradingView
Rathbones faces more profit pressure. The firm plans to book £60 million in charges, net of expected insurance recoveries, over two years. The group said these are non-underlying and won’t show up in adjusted earnings or normal trading. Starting July 1, Rathbones will halt investment management fees on cash held in discretionary portfolios, which it expects will lower 2026 underlying pre-tax profit by around £9 million. Dividend policy isn’t changing. The £20 million buyback is ready to go after getting the green light from the Prudential Regulation Authority. TradingView
Rathbones saw a sharp move in markets after a run of steadier figures. The firm reported first-quarter operating income of £240.7 million in May, up 9.4% from a year ago. Funds under management and administration were £113.6 billion at March’s close, lower than £115.6 billion at the end of 2025. That FUMA number is what wealth managers use to set fees. Group net outflows totaled £0.8 billion for the quarter, split evenly between Wealth Management and Asset Management, each seeing £0.4 billion leave. Rathbones
Rathbones flagged a short-term knock but left its dividend unchanged and will continue the buyback. Only 4% of its current clients are impacted, the firm said. CEO Jonathan Sorrell repeated that “Our strategy is unchanged” and said Rathbones remains “committed to operating to the highest standards.” Regulators may push the clean-up longer, and the review could surface new trouble. About £900 million of recent annual gross inflows are paused or tied up. Despite the share price fall, the stock looks dicey, with valuation down but questions on growth and margins hanging over it. Investegate
Rathbones will release interim numbers for the first half on July 29. Investors are watching for updates on the £60 million remediation plan, its impact on cash costs, and whether client inflows have picked up. They also want early signs on profits now that cash-balance fees are gone, plus evidence the £20 million buyback has gotten off the ground without hurting regulatory work. Rathbones
