File Ownership Failure

When I try and edit files with permissions set to 775 where my user is a member of the group but not the owner of the file being edited I get an error everytime I try and save saying ' set times: Not owner'. Yet the file is saved but the editor thinks otherwise.

Is this a bug or is there I setting that can override this?

Turn off "preserve timestamp" option in Transfer settings. The error message already suggest this in version 3.5.5 (the latest one).