Key facts
- Rathbones is suspending client account contributions.
- Rathbones is pausing inflows totaling £530 million.
- The actions follow an FCA probe into compliance shortcomings.
- The probe concerns Rathbones' UK wealth management business.
- Rathbones expects £60 million in remediation costs.
- These costs are anticipated over the next two years.
Rathbones, a UK wealth manager, is set to suspend client account contributions and pause inflows totaling £530 million. This decision comes in response to a probe by the Financial Conduct Authority (FCA) into compliance shortcomings within its UK wealth management business. The firm anticipates incurring approximately £60 million in additional costs over the next two years, specifically for remediation efforts related to the issues identified.
The FCA's review uncovered compliance shortcomings, prompting Rathbones to take these precautionary measures. The suspension of contributions and inflows is intended to allow the firm to address the identified issues thoroughly and ensure compliance with regulatory standards. The £530 million figure represents the expected inflow of funds that will be temporarily halted.
These costs are directly linked to the remediation activities required to rectify the compliance deficiencies. The firm's proactive stance aims to mitigate further regulatory scrutiny and rebuild confidence in its operational integrity. The FCA probe is a significant development for Rathbones, impacting its immediate business operations and financial outlook.