Rathbones regulatory issues, a setback, limited financial impact on Investec

Research evidence excerpt

Rathbones regulatory issues, a setback, limited financial impact on Investec

Global Research

16 June 2026ab

First Read

EquitiesInvestec

Rathbones regulatory issues, a setback, limited South Africa

financial impact on Investec Banks, Ex-S&L

12-month rating Buy

12m price target 800p

Rathbones announcement indicates costly regulatory adjustments

Investec owns 43.2% of Rathbones, a listed discretionary fund manager in the UK,

contributing ~12% of Investec's earnings and comprising 13% of our SOTP valuation. Price (15 Jun 2026) 641p

Rathbones announced today that it has undertaken a Skilled Person review following RIC: INVP.L BBG: INVP LN

engagement with the FCA, with the review indicating areas requiring improvement

Trading data and key metrics

within its UK Wealth Management business relating to Consumer Duty, as well as other

areas of compliance, oversight and assurance arrangements. It is implementing a 52-wk range 660p-496

voluntary pause for up to 12 months to onboarding of new clients that require Market cap. £5.38b/US$7.22b

Enhanced Due Diligence (EDD clients), while also implementing changes to procedures Shares o/s 839m (ORD)

and controls. It is also pausing the acceptance of inflows into general investment Free float 67%

accounts from some existing EDD clients, affecting ~4% of its client base. It is also Avg. daily volume ('000) 2,751

reviewing aspects of its pricing and will cease charging investment management fees on Avg. daily value (m) £16.9

cash balances within discretionary portfolios in the interim. Rathbones shares have Common s/h equity (03/27E) £5.76b

declined ~17% on this announcement. P/BV (03/27E) 0.9x

Tier 1 ratio 15%

Limited financial impact for Investec, but a challenge for its wealth strategy

EPS (UBS, diluted) (GBX)