Sir Keith Mills is suing Coutts for £8m over claims the Queen’s banker mis-sold him a savings bond issued by American insurance group AIG.
According to the Sunday Times, the action is the culmination of Mills’ two-year campaign against the bank.
Mills’ lawyers notified Coutts on Friday that a writ would be filed today.
The report claims Mills, who invented Airmiles and the Nectar card, went to Coutts for financial advice in 2007, where the bank recommended he invested in AIG premier bonds. It is thought Mills put in £65m and another £8m from a family trust.
The Sunday Times claims Mills will argue Coutts did not tell him the bonds were backed by risky assets. It is claimed Mills questioned the bank in 2008 when press reports surfaced surrounding the future of AIG, but bank executives told him they were not worried.
The American Government rescued the insurer in September 2008. Mills immediately tried to cash out the bonds but they had been frozen. AIG returned half of the investment immediately but the rest has been put in a recovery fund, which cannot be touched until 2012. Mills is suing for £8m in damages and possible further costs for lost interest.