Rathbones hit the headlines after it revealed it would pause onboarding new clients that require enhanced due diligence in response to the Financial Conduct Authority highlighting flaws in its compliance processes, but less attention was given to the regulator's concerns over the group's treatment of client cash in its discretionary portfolios.
This could result in wider implications for the discretionary fund management (DFM) sector, according to experts who spoke to PA's sister title Investment Week. In the stock market filing, Rathbones noted it was "reviewing certain aspects of its pricing as part of its ongoing commitment to delivering fair value for clients". "In the interim, the group intends to cease charging investment management fees on cash balances held within clients' discretionary portfolios from 1 July. This is expected to impact underlying profit before tax by approximately £9m for 2026," it added. However...
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