Businessman Sir Keith Mills has settled with Coutts after taking the private bank to court for allegedly mis-selling him AIG bond products and inadequately explaining the risks associated with the bonds.
Mills had initially sued Coutts for a sum of £8m. He said he had invested £65m of his own personal wealth back in 2008, following advice given to buy the bond products issued by the troubled US-insurer AIG from the private bank.
The businessman has stated that he may have chosen ‘less risky’ options had he been ‘properly advised’.
When asked for Coutts’ reaction to the arrangement, the bank said it confirmed that they have reached a mutual settlement with Sir Keith Mills and were pleased to have resolved this issue.
Coutts was fined £6.3m ($10.2m) by the UK Financial Services Authority (FSA) in November last year for failing to provide adequate advice to clients about the risks associated with the AIG life bonds.