RBS hit by FSA inquiry into Coutts
Saturday 07 August 2010
Coutts, the Queen's bank, is under investigation from the financial market watchdog over a fund it sold to customers including TV presenter Jeremy Clarkson, it emerged yesterday.
RBS, which owns Coutts, disclosed the Financial Services Authority (FSA) investigation during its interim results yesterday. This comes just days after the regulator issued RBS with a record fine.
The FSA notified the banking group in July that it had launched an investigation into Coutts' marketing of a money market bond fund from American Life Insurance Company – owned by troubled US insurer AIG – to customers between 2001 and 2008.
Top Gear presenter Clarkson and comedian Frank Skinner are believed to have invested in the fund, which ran into trouble during the credit crunch. AIG's subsidiary blocked withdrawals in 2008.
The bank would not comment further than saying it was "co-operating fully" with the investigations. A spokesman for the FSA confirmed the investigation, but declined to comment further.
Sir Keith Mills, who started Air Miles and Nectar cards, welcomed the FSA's move. He is suing Coutts for negligence after he was advised to invest £65m of his savings in AIG Life Premier Bonds. "I have long maintained that Coutts misrepresented the nature of the investments it sold to me and others," he said.
This comes just days after the FSA gave RBS a fine worth £5.6m over lax controls at RBS, NatWest, Ulster Bank and Coutts. The fine covers the period from December 2007 to 12 months later, when Sir Fred Goodwin was at the helm of RBS.
The regulator said RBS had failed to adequately screen its customers and the payments they made.
Exclusive: World’s most pristine waters are polluted by US Navy human waste
Chicago river turns green to mark Saint Patrick's Day
Saint Patrick's Day: Google Doodle celebrates patron saint of Ireland - here are 10 things you didn't know about the man himself
Missing Malaysia Airlines Flight MH370: Did jetliner fly into area controlled by Taliban? Net widens after claims final satellite signal could have been sent from the ground
Nasa-funded study warns of ‘collapse of civilisation’ in coming decades
Ukip and Nigel Farage on course for remarkable victory in European elections
Katie Hopkins continues campaign to become Britain's most hated talking head with poorly timed Bob Crow tweet
No EU referendum under Labour: Ed Miliband to reveal that vote on membership is ‘unlikely’ in next Parliament if party wins power
Tony Benn was entirely ineffectual - and usually wrong
The rise of Ukip: Study warns Labour that Eurosceptic party's electoral base now 'more working class than any of the main parties'
Europeans have ‘got whiter’ due to natural selection in past 5,000 years, scientists say
- 1 Is your name now 'banned' in Saudi Arabia?
- 2 Gender-specific books demean all our children. So the Independent on Sunday will no longer review anything marketed to exclude either sex
- 3 Missing Malaysia Airlines Flight MH370: Did jetliner fly into area controlled by Taliban? Net widens after claims final satellite signal could have been sent from the ground
- 4 Nasa-funded study warns of ‘collapse of civilisation’ in coming decades
- 5 'Missing Malaysia Airlines Flight MH370 plane found in Bermuda Triangle!' Viral Facebook links are profiting hackers
iJobs Money & Business
£35000 - £43000 per annum + Bonus and Benefits: Harrington Starr: A global lea...
£50000 - £60000 per annum: Harrington Starr: Linux Systems Administrator - UNI...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...