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Sir Keith Mills sues Coutts for £8m over AIG bonds

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.



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There are 7 comments at the moment, we would love to hear your opinion too.

  1. Sir Keith should have a word with Mark Hoban MP 20th December 2010 at 11:10 am

    Can you believe anyone would place £65m into AIG premier bonds even with the help of a banker? The banks must be giving Mark Hoban MP a big thank you the RDR present he is about to give them so we can all expect the consumers to enjoy similar treatment from the banks as they grab market share.

    Paul Selly HBOS on RDR: “Bancassurers set to benefit”

  2. If Sir Mills had bought commercial property he would lost have as well!

  3. Good advice-not! Dump the lot in one product heh? Sophisticated stuff 🙂

  4. Being Coutts and the client Ultra high net worth presumably the adviser was very knowledgeable and an expert in investment. What kind of diversification was this then? This is not expert it’s just rubbish advice. Another example of how greed overcomes knowledge and no amount of certificates will make any diference. The adviser losses his job but the real culprit Coutts keeps its licence.

  5. What qualifications are held by the person/s who gave this advice?

  6. Mark Hoban MP school of banking 23rd December 2010 at 11:39 am

    This is the Mark Hoban MP school of banking post RDR. Mark this is the level of investment advice you get from even an upmarket bank £65m in one bond and this is what you want to promote!

  7. The advice from Barclays was they would offer me the highest interest rate at the time with instant access never was a bond mentioned or AIG and if the adviser would have mentioned a risk the money would have stayed in the Natwest Deposit account. many more investors like myself have put their trust and confidence in the banks they have always dealt with , needless to say they don’t want to know now -short sited and only want to line their own greedy pockets

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