# Rathbones Faces £2.5 Million Skilled Person Review After Second FCA Section 166 Notice

> Rathbones' Vision Independent Financial Planning subsidiary received a second FCA Section 166 notice.

- Published: 2026-10-22T07:50:40+00:00
- Section: Regulation & Approvals
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-22/rathbones-second-fca-section-166-order
- Source: [CityAM](https://www.cityam.com/rathbones-faces-million-pound-hit-from-second-fca-order/)

## Key takeaways

- Rathbones' subsidiary Vision Independent Financial Planning received a Section 166 notice from the FCA requiring a Skilled Person review estimated to cost £2.5 million.
- The order is expected to reduce Rathbones' pre-tax profit by £4 million from 2027 onwards.
- Funds under management and administration rose 7.2% year on year to £121.1 billion, while clients withdrew a net £401 million during the period.

[Rathbones Group Plc](https://akta.pro/company-profiles/0007onr/rathbones-group-plc)'s subsidiary [Vision](https://akta.pro/company-profiles/002k9sn/vision) Independent Financial Planning has received a second Section 166 notice from the Financial Conduct Authority, requiring a Skilled Person review estimated to cost £2.5 million. [CityAM](https://www.cityam.com/rathbones-faces-million-pound-hit-from-second-fca-order/) reported that the order is expected to reduce pre-tax profit by £4 million from 2027 onwards.

## Rathbones' Second FCA Skilled Person Review

The Section 166 notice requires Rathbones to appoint independent advisers to probe the operations of Vision Independent Financial Planning, and the regulator uses the process to determine whether it will take enforcement action. Law firm Mills & Reeve said a s166 notice "provokes fear in the hearts of financial organisations as it indicates that your firm's risk and compliance monitoring has gone awry in the eyes of the FCA."

Rathbones will continue to manage £1.9 billion in funds under management and administration for clients tied to the firm. The company's first FCA review is expected to cost up to £60 million after the watchdog uncovered compliance shortcomings earlier this year. That review forced Rathbones to stop onboarding new enhanced due diligence clients, though it expects to lift restrictions on EDD in the fourth quarter and said it has made "good progress" addressing the findings. Chief executive Jonathan Sorrell said he remains committed to turning Rathbones into "the best wealth manager in the UK" despite the FCA reviews.

## Rathbones' Outflows and Fund Growth

According to akta.pro [company records](https://akta.pro/company-data), Rathbones announced a voluntary pause on onboarding new enhanced due diligence clients and restricted inflows from approximately 4,700 higher-risk clients in June 2026, alongside a £60 million two-year remediation programme following an FCA-commissioned Skilled Person Review that identified Consumer Duty weaknesses. The same records show funds under management and administration of £115.6 billion for full year 2025, a 6% increase year over year.

## Rathbones' Irish Licence and Board Changes

Rathbones secured an Irish licence to set up an EU hub, enabling it to serve clients in Ireland and across the bloc, The Irish Times reported in October 2026. The firm appointed Michelle Sylvia Scrimgeour as a director effective 1 October 2026, during the Investec Wealth & Investment integration, according to Simply Wall St. In July 2026, CityAM reported that Rathbones experienced near £1 billion in net outflows during the first half of the year while bracing for costs from the FCA skilled person review.

## What Comes Next for Rathbones

Rathbones expects to lift restrictions on enhanced due diligence clients in the fourth quarter. The company confirmed its regulatory programme announced in June continues on schedule, with targeted client reviews already started.

## Companies in this story

- [Rathbones Group Plc company profile](https://akta.pro/company-profiles/0007onr/rathbones-group-plc) · website: https://www.rathbones.com
- [Vision company profile](https://akta.pro/company-profiles/002k9sn/vision) · website: https://www.visionifp.co.uk

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