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 Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter