{
  "id": 16014620,
  "title": "Rathbones faces million-pound hit from second FCA order",
  "url": "https://urgent.news/2026/10/22/rathbones-faces-million-pound-hit-from-second-fca-order",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-22T07:36:52.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/rathbones-faces-million-pound-hit-from-second-fca-order/"
  },
  "original_language": "en",
  "account": "Rathbones, a FTSE 250 firm, faces a potential £1 million financial hit due to another order from the Financial Conduct Authority (FCA). The company's subsidiary, Vision Independent Financial Planning, received a Section 166 notice, which mandates a \"Skilled Person\" review into the business operations. This review, crucial for determining if enforcement action will be taken, is estimated to cost Rathbones £2.5 million. Additionally, the firm anticipates a £4 million reduction in pre-tax profit from 2027 onwards, as fewer adviser firms collaborate with them. Despite managing £1.9 billion in funds under management and administration (FUMA), Rathbones will continue working with clients tied to the firm. The first FCA review is expected to incur costs up to £60 million, following compliance shortfalls earlier this year. However, the group expects to lift restrictions on enhanced due diligence (EDD) clients by the fourth quarter, having made \"good progress\" in addressing the issues identified in the Skilled Person review. Rathbones confirmed the regulatory program remains on schedule, alongside beginning targeted client reviews. No \"material client outflows\" are attributed to the program. Despite a 7.2% year-on-year increase in FUMA to £121.1 billion, clients withdrew a net £401 million during the period. The wealth management arm achieved net inflows of £24 million, up from losses of £300 million the previous year. However, growth was limited by the voluntary pause on accepting new money from EDD clients and a cautious market outlook ahead of the Autumn Budget. Meanwhile, the asset management arm reported outflows of £425 million, highlighting ongoing challenges in the UK retail market. Gross outflows reached £783 million. Rathbones shares rose by 1.2% to 1,618 pence, up from a 15% decline since the start of the year.",
  "summary": "Rathbones face another multi-million pound hit after a second Financial Conduct Authority order into the wealth manager. Rathbone’s subsidiary, Vision Independent Financial Planning, has received a Section 166 notice from the City watchdog, which requires the FTSE 250 firm to conduct a “Skilled Person” review into the business. The order forces businesses to appoint independent [...]",
  "key_points": [
    "Rathbones faces £1 million hit from FCA's Section 166 notice",
    "Skilled Person review to cost £2.5 million, profit down £4 million from 2027",
    "Enhanced due diligence client restrictions to lift by Q4"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}