Bloomberg News

Coutts Settles AIG Bond Dispute With 2012 Games Deputy Boss

December 13, 2012

Royal Bank of Scotland Group Plc’s Coutts & Co. settled a claim by the deputy chairman of the organizing committee for the 2012 London Olympics that the lender improperly sold him American International Group Inc. (AIG:US) bonds.

The bank reached a deal with Keith Mills during a London trial over the dispute, Caroline Wells a spokeswoman for Coutts said in an e-mailed statement, saying the bank was “pleased to have resolved this issue.”

Mills, who created the air miles loyalty program, invested 65 million pounds ($104.8 million) in single-premium U.K. life- assurance bonds sold by AIG in 2007, his lawyers said in documents filed in London court. Mills lost about 7.5 million pounds on the investment, his lawyers said at a Dec. 6 hearing.

Matthew Fletcher, a spokesman for Mills, declined to comment on the settlement.

Coutts was fined 6.3 million pounds in November 2011 by the Financial Services Authority for not warning clients about the risks of investing in the bond fund.

The case is: Sir Keith Edward Mills & Anr v. Coutts & Co., High Court of Justice, Chancery Division, HC10C04501

To contact the reporter on this story: Jeremy Hodges in London at jhodges17@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net


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