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FSA confirms investigation of Coutts over AIG bond sales
The Financial Services Authority (FSA) has confirmed it has launched an investigation into Coutts & Co over the sale of AIG bonds prior to the insurer's collapse.
The investigation into the private banking division of RBS was revealed in RBS's half yearly results released on Friday.
The results said: "In July 2010, the FSA notified RBS Group that it was commencing an investigation into the sale by Coutts & Co of ALICO (American Life Insurance Company) premier access bond enhanced variable rate fund to customers between 2001 and 2008 as well as its subsequent review of those sales.
"RBS Group and its subsidiaries are cooperating fully with this investigation."
Christopher Hamilton, a spokesperson for the FSA, said:
"We have seen the firm's statement and can confirm its accuracy in that we are investigating Coutts & Co.
"We have no other comment to make at this time."
RBS would not comment on the investigation.
The investigation follows the £5.6m fine handed down by the FSA earlier this month to Coutts and other members of the Royal Bank of Scotland Group for failing to have controls in place to prevent breaches of UK financial sanctions.
