Rathbones lied to on failed £45m InvestCloud deal, tribunal told

TL;DR

Rathbones Sues InvestCloud: Wealth manager Rathbones cancelled its £45m IT contract with InvestCloud after allegations the provider lied about capabilities, as heard in employment tribunal.[[1]](https://www.fnlondon.com/amp/articles/rathbones-lied-to-over-botched-tech-deal-court-hears-ceb01a1e)[[2]](https://www.fnlondon.com/articles/rathbones-lied-to-over-botched-tech-deal-court-hears-ceb01a1e)
January Switch Announced: Rathbones publicly revealed in January 2026 it was replacing InvestCloud tech with Salesforce but gave no reason at the time.[[1]](https://www.fnlondon.com/amp/articles/rathbones-lied-to-over-botched-tech-deal-court-hears-ceb01a1e)
Tribunal Reveals Details: Court testimony from ex-InvestCloud executive's case exposed the failed delivery and Rathbones' frustration over unfulfilled promises.[[3]](https://assets.publishing.service.gov.uk/media/68b5ad9e11b4ded2da19fcdf/Mr_Alan_Smith_v_InvestCloud_Limited_-_6003766-2024.pdf)[[4]](https://www.fnlondon.com/articles/rathbones-lied-to-over-botched-tech-deal-court-hears-ceb01a1e?mod=homepage)

The story at a glance

An employment tribunal heard claims that InvestCloud misled Rathbones about its software abilities, leading the wealth manager to axe a £45m IT contract. Rathbones, InvestCloud, and former InvestCloud executive Alan Smith are central, with testimony from Smith's unfair dismissal case against InvestCloud revealing the dispute. The article reports this now because the tribunal proceedings made the previously undisclosed reasons public. Rathbones had announced the switch to Salesforce in January 2026 without explanation.[[1]](https://www.fnlondon.com/amp/articles/rathbones-lied-to-over-botched-tech-deal-court-hears-ceb01a1e)

Key points

Rathbones signed a service agreement with InvestCloud in October 2021 for digital wealth products, valued at £45m overall.
InvestCloud allegedly sold systems it did not have and lacked a realistic delivery plan, causing delays and team stress.
Rathbones became aggressive after realising it had been misled, per testimony from Alan Smith, ex-InvestCloud VP.
Rathbones announced in January 2026 it would replace InvestCloud with Salesforce and Xplan for client lifecycle management.
The tribunal case is Alan Smith v InvestCloud Ltd (case 6003766/2024), focused on Smith's dismissal but included Rathbones deal evidence.
No separate lawsuit between Rathbones and InvestCloud mentioned; details emerged via this employment hearing.[[3]](https://assets.publishing.service.gov.uk/media/68b5ad9e11b4ded2da19fcdf/Mr_Alan_Smith_v_InvestCloud_Limited_-_6003766-2024.pdf)

Details and context

The contract aimed to provide client lifecycle management tech, but InvestCloud overpromised on delivery timelines like September 2022, which proved impossible due to unreadiness and understaffing.

Key InvestCloud staff on the project, including Clare Hughes and Izzy Brown, reported health issues from pressure as Rathbones grew frustrated.

Smith raised internal concerns from 2022, stating Rathbones had been lied to by sales staff like John Wise; the tribunal accepted some of these as protected disclosures but not linked to his dismissal.

Rathbones' public statements framed the Salesforce shift as operational streamlining, with completion planned by Q3 2026 and short-term cost increases of £7m.[[5]](https://citywire.com/wealth-manager/news/rathbones-15m-settlement-against-former-director-gets-court-approval/a767720)

Key quotes

"Rathbones knew they had been lied to" – Alan Smith to InvestCloud interim CEO Richard Lumb in April 2023.[[3]](https://assets.publishing.service.gov.uk/media/68b5ad9e11b4ded2da19fcdf/Mr_Alan_Smith_v_InvestCloud_Limited_-_6003766-2024.pdf)

Why it matters

Failed tech deals like this expose risks in wealth management IT outsourcing, where overpromising can lead to major sunk costs and operational disruptions. Investors and clients of Rathbones face near-term expense hikes from the switch, though no write-offs are expected since InvestCloud costs were expensed as incurred.[[5]](https://citywire.com/wealth-manager/news/rathbones-15m-settlement-against-former-director-gets-court-approval/a767720) Watch for any direct Rathbones-InvestCloud litigation or resolution, though none is confirmed yet.

What changed

Rathbones relied on InvestCloud for client lifecycle systems after a £45m multi-year investment. The firm axed the contract and shifted to Salesforce/Xplan, announced January 2026. The change stems from delivery failures aired in July 2025 tribunal hearings.

FAQ

Q: Why did Rathbones cancel the InvestCloud contract?

A: InvestCloud allegedly lied about its capabilities, sold non-existent systems without a delivery plan, and missed timelines, leading to aggressive client response and project failure. The £45m deal for digital wealth products signed in October 2021 could not be fulfilled. Rathbones switched to Salesforce as announced in January 2026.[[1]](https://www.fnlondon.com/amp/articles/rathbones-lied-to-over-botched-tech-deal-court-hears-ceb01a1e)[[3]](https://assets.publishing.service.gov.uk/media/68b5ad9e11b4ded2da19fcdf/Mr_Alan_Smith_v_InvestCloud_Limited_-_6003766-2024.pdf)

Q: What role did Alan Smith play in the tribunal claims?

A: As former InvestCloud Executive VP, Smith managed the Rathbones account from June 2022 and testified that sales staff misled Rathbones. His unfair dismissal case revealed these details. The tribunal accepted some of his concerns as valid but ruled his firing procedural, not disclosure-related.[[3]](https://assets.publishing.service.gov.uk/media/68b5ad9e11b4ded2da19fcdf/Mr_Alan_Smith_v_InvestCloud_Limited_-_6003766-2024.pdf)

Q: When did Rathbones announce the Salesforce replacement?

A: In January 2026, Rathbones revealed plans to consolidate client management on Salesforce and Xplan, replacing InvestCloud processes. Completion is set for end-Q3 2026 with added 2026 costs of £7m. No reasons for the switch were given publicly then.[[1]](https://www.fnlondon.com/amp/articles/rathbones-lied-to-over-botched-tech-deal-court-hears-ceb01a1e)

Q: Was there a direct lawsuit between Rathbones and InvestCloud?

A: No direct lawsuit reported; allegations surfaced in Alan Smith's employment tribunal against InvestCloud (6003766/2024, heard July 2025). Rathbones axed the deal but no further legal action confirmed in coverage.[[1]](https://www.fnlondon.com/amp/articles/rathbones-lied-to-over-botched-tech-deal-court-hears-ceb01a1e)

[[1]](https://www.fnlondon.com/amp/articles/rathbones-lied-to-over-botched-tech-deal-court-hears-ceb01a1e)