17% was the share-price move after Rathbones (RAT.L) disclosed the outcome of an FCA-linked Skilled Person Review. Morningstar UK reported the stock at 1,616.99 pence on Tuesday morning, while Rathbones’ own June 16 regulatory update set out the client-flow and cost numbers.

The market impact clears the Tier-1 threshold because it is a single-stock move above 8% tied to a regulatory catalyst. Rathbones said the review found areas for improvement in Consumer Duty implementation and in compliance, oversight and assurance arrangements inside its UK Wealth Management business.

Item	Company figure
New EDD-client onboarding pause	Up to 12 months
Relevant gross inflows from new EDD clients	About £370M in last 12 months
Existing EDD clients affected	4,700 clients, or 4% of 119,000
Relevant gross inflows from existing EDD clients	About £530M in last 12 months
Expected remediation costs	£60M over two years
2026 underlying PBT impact from cash-fee change	About £9M

The combined flow exposure is about £900M across new and existing EDD-client channels. Rathbones also plans to stop charging investment management fees on cash balances in discretionary portfolios from July 1, a pricing change it expects to reduce 2026 underlying profit before tax by about £9M. The company said the targeted review will assess whether a portion of clients received good outcomes.

The dividend policy is unchanged, and a previously announced £20M buyback has PRA approval. The next items to watch are the two-year remediation timetable, whether the client review changes more pricing practices, and whether the 12-month EDD pause affects net flows in the next quarterly update.

Not investment advice. Verify all figures with primary sources before acting.

#rathbones

Rathbones (RAT.L) drops 17% after FCA review flags £900M flows