Coutts facing £6m fine for AIG bond sales

Coutts, the private bank owned by the Royal Bank of Scotland (RBS), is expected to be fined in the region of £6m by the Financial Services Authority (FSA) today for the mis-selling of bonds issued by failed US insurer AIG.

The regulator is expected to confirm the bank did not properly warn investors of the potential risks of putting their money into the ALICO Premier Access Bond Enhanced Variable Rate Fund between 2003 and 2008, the Telegraph reports.

AIG was one one of the high profile victims of the 2008 financial crisis, when it had to be bailed out by the US government.

Investors in the bond subsequently found themselves unable to withdraw their money as AIG's assets were frozen and the FSA launched its investigation into the sale of the products last year.

Coutts is also currently being sued by a group of investors, including Air Miles founder Sir Keith Mills, over the sale of the bonds.