A very unpleasant week for Rathbones, which issued a stock market notice about a skilled person review and saw its share price plunge.
The news was covered across the trades - with Citywire noting a client freeze among other problems.
European Business Magazine also had some fine coverage as the news broke, but it may be worth looking at the regulatory update itself which listed the following actions the firm will now take with an estimated cost of £60m.
"1. A programme of work addressing the recommendations from the review, which is expected to be conducted over a two-year period.
"2. A targeted review of a portion of our clients to assess whether they have received good outcomes.
"3. For a period of up to twelve months, a voluntary pause to the onboarding of new clients that require Enhanced Due Diligence (“EDD clients”) whilst the Group focuses on implementing changes to its procedures and controls. In the last twelve months, relevant gross inflows from EDD clients totalled approximately £370 million.
"4. A voluntary pause to the acceptance of inflows into general investment accounts from some existing EDD clients. The Group will work with these clients to meet certain requirements such that they are able to resume inflows as soon as practicable. This affects approximately 4,700, or 4%, of the Group’s 119,000 clients, and in the last twelve months, relevant gross inflows from these clients totalled approximately £530 million."
Lots of coverage continued to bubble up throughout the week. Not one of the four points above, but Rathbones removed investment charges on cash management its DFM, provoking a lot of coverage of the wider consequences here in Investment Week with the self explantory headline of Rathbones review puts FCA client cash crackdown in the spotlight. It is also considered by me on Octo Members.
Law firm Pinsent Masons highlights what it says is a Consumer Duty warning shot for UK firms on its own website.
The Financial Times declares that it's advantage banks when it comes to the UK's wealthy.
Rather intriguingly, the Rathbones bosses dip the buy the dip in the firm's shares and it did launch a £20m share buyback programme later in the week.
The CEO and others are clearly not entirely pessimistic as Citywire New Model Adviser reports Rathbones directors spend £500k on shares after FCA shock.
More than half of UK retail investment platforms have experienced an increase in cyber attacks over the past year, according to a new sector-wide report.
The Cyber State of the Nation Report for Investment Firms and Platform Providers, published by The Platforms Association in partnership with Deloitte, found that 55% of firms reported a rise in cyber incidents during the past 12 months. Money Markeing reports.
A report from pension consultancy Aon has raised questions about the reliability of AI-generated retirement recommendations after identical pension data produced different outcomes. FTAdviser reports.
Charging deceased clients accidentally is 'more common' than the advice profession would like with Professional Adviser suggesting that the fee can outlive the service because the records do not talk to each other.
