FSA initiated investigation against Coutts in August last year after it received complaints from investors who said they weren’t properly informed of the risks involved in AIG Life Premier Bonds.
It is being understood that FSA has concluded that Coutts actually failed to properly warn investors about the risks of investing and FSA could announce its judgement later this week.
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We believe that the fine will considerably dent Coutts’ brand as private bank, which is currently in the middle of a revamp aimed at making it more competitive with rivals globally.
As part of its revamp initiave, the bank deceided against using RBS name in its overseas businesses at the end of last month.
The news could also agrevate Coutts’ woes as it will give fillip to a group of investors who are also suing the Coutts over the mis-selling of the bonds separately.
The group includes Sir Keith Mills, the millionaire founder of the Air Miles and Nectar loyalty schemes, who had been advised to put more than GBP65 million of his fortune into the AIG bond funds.
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