Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Jersey legal claim to hang over Rathbones until 2014

Jersey legal claim to hang over Rathbones until 2014

The legal claim filed against a former director of Rathbone Brothers is set to hang over the firm until 2014.

The case is linked to a claim relating to the management of a Jersey trust. At the beginning of 2012 it was filed against a former director of Rathbone Trust Company Jersey Limited, which Rathbones owned between March 2000 and October 2008.

None of the investments in the trust were chosen or managed by Rathbones but the claim has been filed against three trustees, including a former Rathbones employee, because one of the underlying assets did not perform as well as expected.

As revealed by Wealth Manager in August last year, the firm had incurred legal expenses of £600,000 at that point and expected these to rise by £100,000 a month.

While the claim has cost Rathbones much less than expected – in the region of £800,000 to date – the firm said it could be next year before the underlying case goes to court.

Rathbones said: ‘A final date for the insurance claim has been set for autumn 2013, but the underlying case in Jersey is unlikely to be heard until 2014.’

Paul Stockton (pictured), Rathbones’ finance director, added the costs of the claim seemed to have slowed. He said the firm was managing it ‘as the court allows’.

Previously, Rathbones said it did not expect the claim to be successful, even if it took time to resolve.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter