Rathbones Group Plc (RAT.L) on Tuesday said it expects to incur about £60 million in costs over the next two years to address findings from a regulatory review of its UK Wealth Management business.
The review, conducted following engagement with the Financial Conduct Authority (FCA), identified areas for improvement in the implementation of Consumer Duty and certain compliance, oversight and assurance arrangements.
The company said it will undertake a two-year programme to address the review's recommendations and conduct a targeted review of certain clients to assess whether they received good outcomes.
Rathbones will also voluntarily pause onboarding new clients requiring enhanced due diligence for up to 12 months while it strengthens procedures and controls. In the past year, gross inflows from such clients totaled about £370 million.
In addition, the group will temporarily stop accepting inflows into general investment accounts from some existing enhanced due diligence clients, affecting around 4,700 clients, or 4% of its client base. Gross inflows from these clients amounted to about £530 million over the last 12 months.
The company said its dividend policy remains unchanged and that its previously announced £20 million share buyback programme will begin shortly.
Rathbones also said it plans to stop charging investment management fees on cash balances held in discretionary portfolios from July 1, a move expected to reduce 2026 underlying profit before tax by about £9 million.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.