18th Jun 2026 09:46
(Alliance News) - Rathbones Group PLC was distracted from implementing consumer finance regulations by the work required for its merger with the UK wealth arm of Investec PLC and Ltd, the Financial Times reported on Wednesday.
Rathbones shares fell 17% in London on Tuesday after the company warned of a profit hit, saying it has voluntarily halted new inflows from some existing high-risk clients until they "meet certain requirements". It outlined a series of moves after a skilled person review, which followed engagement with the UK Financial Conduct Authority, and said it expects a GBP60 million profit hit over the next two years.
Rathbones, a London-based investment and wealth manager, completed its merger with Investec Wealth & Investment UK in September 2023.
The drain on resources caused by the merger hindered Rathbones's ability to implement new UK Consumer Duty rules that came into effect in July 2023, the FT reported, citing "people familiar with the situation".
Rathbones shares were down 0.9% to 1,614.74 pence early Thursday in London. They are down 16% so far in 2026. Investec PLC shares were down 2.1% to 621.00 pence in London and Investec Ltd shares were down 1.6% to ZAR133.85 in Johannesburg.
Rathbones didn't immediately respond to a request by Alliance News for comment on the newspaper report.
By Tom Waite, Alliance News editor
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