RBS Owned Coutts 6m Bond Misselling Fine

RBS Owned Coutts 6m Bond Misselling Fine.

Coutts & Co are to be fined around £6m for mis-selling products linked to the AIG enhanced fund.  The fine relates to complaints from investors who say they were not properly informed of the risks relating to the AIG life premier bonds, which were backed by the enhanced fund.

The AIG funds were recommended as a low-risk, easy-access investment and an alternative to bank and building society deposits.  However, last August the Financial Services Authority started an investigation into the sales of the AIG bonds by Coutts & Co advisers.

In September 2008, AIG suspended withdrawals from its enhanced fund due to a rush of redemptions caused by concerns about the company.  Investors had half their investments returned later that year, but were forced to to lock the rest away for up to 4 years to guarantee it was returned in full.  Those people who wanted to access the rest of their investment in December 2008 had to take a 25% hit on the remaining 50%.