Abstract. Let G be a locally soluble-by-finite group in which every nonsubnormal subgroup has finite rank. It is proved that either G has finite rank or G is soluble and locally nilpotent (and even a Baer group). On the other hand, a group G is constructed that has infinite rank and satisfies the given hypothesis, but does not have every subgroup subnormal.2000 Mathematics Subject Classification. 20E15, 20F19.