Key facts
- Rathbones faces an estimated £60 million hit from an FCA review.
- The firm is pausing onboarding for new clients requiring Enhanced Due Diligence (EDD).
- Fees on client cash balances will cease from July 1, impacting 2026 profit by £9 million.
- The review identified issues with Consumer Duty, compliance, oversight, and assurance arrangements.
Rathbones Group Plc announced on June 16, 2026, that a review initiated with the Financial Conduct Authority (FCA) identified areas for improvement in its UK Wealth Management business. These include Consumer Duty implementation, compliance, oversight, and assurance arrangements. In response, Rathbones is undertaking a two-year program to address recommendations, pausing onboarding for new clients requiring Enhanced Due Diligence (EDD) for up to twelve months, and halting inflows into general investment accounts from some existing EDD clients. These measures are expected to result in estimated costs of £60 million, net of insurance recoveries, over the next two years. Additionally, Rathbones will cease charging investment management fees on cash balances within clients' discretionary portfolios from July 1, 2026, a move projected to impact 2026 underlying profit before tax by approximately £9 million. The firm stated its dividend policy remains unchanged and a previously approved £20 million share buyback program will commence shortly.