Coutts private bank has set aside £110m to compensate clients who may have been sold potentially unsuitable investments between 1957 and late 2012.
The move comes as part of an investment advice review announced in June by Coutts chief executive Michael Morley in a letter to all UK clients that will look into the suitability of advice given in relation to some of its financial planning products pre-RDR.
Royal Bank of Scotland, which owns Coutts, said in its half yearly report released today that a provision had been made to compensate any clients where necessary, although an exact figure was not disclosed as part of the results.
It said: “This review is ongoing. Coutts & Co is in the process of contacting clients and redress will be offered in appropriate cases. A provision has been taken to cover any potential liability arising from this review.”
However Coutts has now confirmed that it has allowed £110m to cover any compensation costs relation to the suitability review.
Morley told the FT that the advice given as part of the firm’s pre-RDR advice process “could have been better” in some instances, adding that Coutts is currently “working hard” to address this.