View more on these topics

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.

Recommended

2

Suffolk Life’s John Moret retires

Suffolk Life’s director of marketing John Moret is to retire at the end of the year. Moret has worked in financial services for the past 40 years and is known in the industry as ‘Mr. Sipp’ having spent much of his time promoting the products. He joined Suffolk Life in 2004 following a four year […]

FSA investigates Swift Group for arrears handling practices

Essex-based lender Swift Group has revealed the FSA is investigating the company’s arrears handling and lending practices. The group’s accounts for the year ending March 31, 2010, show the regulator notified Swift it was conducting the investigation on July 31 last year. The document says the group, which is the parent company of Swift Advances, […]

1

Honister Capital opts against restricted advice arm

Honister Capital says it does not intend to launch a restricted advice service because it sees no benefit for consumers or demand from its IFAs. In an interview with Money Marketing at the Honister Capital annual conference in Brigh-ton last week, strategy, product and commercial development director Alan Easter says consumers would be better served […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

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

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com