River & Mercantile has revealed a number of changes at the executive level, including a new role for its founder James Barham (pictured), as it rebounds from the departure of one of its key fund managers and an ongoing Financial Conduct Authority investigation.
CEO Mike Faulkner said the appointments will help the business further its growth trajectory, strengthen the organisation and allow the group to more effectively service existing and prospective clients.
As part of the reshuffle, Barham, who is the current head of asset management, will step into the newly-created role of deputy CEO. He founded the firm in 2006 and was the group’s CEO until 2014 when it merged with investment consultancy and fiduciary manager P-Solve, which recently rebranded to R&M Solutions.
As deputy CEO Barham will be responsible for all the commercial business lines of the firm, including the solutions and asset management units.
Faulkner will remain CEO of the group and continue to spend his time on investment research and development.
Rodrigs fallout
The executive level restructure occurs as the London-listed fund group still faces an ongoing FCA probe and is dealing with the fallout of losing Philip Rodrigs, one of its heavy-hitting managers who left the firm in February following an internal investigation into a “professional conduct issue”.
R&M was among four asset managers accused by the regulator of breaching competition law after allegedly sharing details of their bids in two initial public offerings (IPOs) last November.
The funds previously managed by Rodrigs have shrunk in size considerably since his exit. The former Investec man ran over £1bn for clients across the R&M UK Smaller Companies and UK Dynamic Equity funds, as well as the group’s UK Micro Cap trust. The UK Smaller Companies fund has experienced the biggest dip in assets which fell from £900m to £606m.
Faulkner has refuted claims Rodrigs’ conduct indicates a cultural issue at the firm.
R&M’s investigation with the FCA is still ongoing but it has slashed the £1m provision it set aside for the probe to £109,000 after receiving guidance from the regulator in July.
Other moves
Jack Berry, head of River and Mercantile Solutions, and chief financial officer Kevin Hayes are also slated to move into new roles as part of the reshuffle.
Berry’s job will see him leveraging the firm’s macro expertise to develop strategies for clients with more complex needs. Hayes meanwhile will take the reins of the Global Solutions business. He will remain CFO for the group. Both Berry and Hayes will report to Barham.
R&M chairman Jonathan Dawson said: “These are very important changes for the company that allow us to further improve our ability to support our client base, maximise the opportunities for working better together across the breadth of our business, and allow Mike the opportunity to maximise time spent focusing on critical investment research and development.”
