Rathbones is pausing the acceptance of certain high-risk client business following an FCA review, a move that leaves the wealth manager facing a potential large reduction in net client inflows. Multiple outlets report the firm is halting investment activity for clients that require “enhanced due diligence” and is tightening onboarding for such accounts. The decision comes after the FCA investigation identifies failings in areas related to how the firm handles higher-risk clients and related processes.
The financial impact described by the sources varies by estimate but centers on a figure close to near-£1bn in risk to inflows or a similar scale. One report cites a £530m blow linked to suspended client account inflows. Other coverage characterizes the pause as lasting up to a year.
The company’s shares fall sharply in reaction to the announcement. The reports consistently mention an approximately 16% to 18% decline, reflecting investor concern about the reduction in future inflow volumes and the wider implications of the regulatory findings. (At least one source also notes the potential scale of the impact could reach around £1bn.)
