Key facts
- Rathbones reported net outflows of nearly £1 billion in the first half of the year.
- The outflows occurred as Rathbones prepares for costs related to an FCA probe.
- The FCA probe is investigating compliance shortcomings at Rathbones.
- Rathbones anticipates probe-related expenses to reach £60 million.
Rathbones has disclosed net outflows amounting to nearly £1 billion for the first half of the current year. This significant outflow of assets occurs as the wealth management firm gears up to cover expenses associated with an ongoing probe by the Financial Conduct Authority (FCA). The FCA's investigation centers on alleged compliance shortcomings within Rathbones. The company has projected that costs directly attributable to this regulatory probe will reach approximately £60 million. These anticipated expenses reflect the financial impact of addressing the FCA's concerns and implementing any necessary corrective measures. The period of substantial net outflows suggests a potential impact on investor confidence or a strategic shift in asset management, further complicated by the looming regulatory costs.