Rathbones chair Clive Bannister has increased his stake in the wealth manager by acquiring £152,000 worth of shares on October 27, signaling confidence despite ongoing regulatory challenges. The company’s stock has fallen 17 per cent in a single day and remains down 9 per cent year-to-date following a June disclosure that it would pause inflows from higher-risk clients and stop charging fees on cash balances. This action followed a “skilled person review” prompted by engagement with the Financial Conduct Authority (FCA).
Rathbones anticipates £60mn in implementation costs from the review’s recommendations. In a recent trading update, the group announced that its financial planning subsidiary, Vision, will also undergo a skilled person review, with expected costs of £2.5mn. The company reported £401mn of net outflows in the three months to September 30, driven by asset management outflows, though wealth management saw inflows for the second consecutive quarter.
Funds under management and administration rose 7 per cent year-on-year to £121bn. Analyst Ben Williams of Shore Capital noted that while the share price is in the “doghouse,” the FCA process presents an “exciting” opportunity.
Source: Financial Times Companies · Summarized by HeadlinesBriefing