Coutts fined £8.75m for ‘serious’ failings

We as UK taxpayers will effectively cover the fine for Coutts via RBS - what next to come out of the 440 Strand closet ??

Why oh why do people use the private banks? Regardless of whether they are retail, investment or private the clue to their service, standards and sales culture is all in the word Bank. - it says it all

Peter - have you not seen the leather cheque book covers and credit card holders that Coutts gives to its clients ? I think there is still the ' snobbery ' factor for some people. My view is that they are very good at day to day banking and indeed lending, but not on investing or giving related advice. They have a core ' multi manager ' model offering which is not the best by any stretch and tend to take their bat home if clients only want to use the banking services.

Some shocking practices going on there. This is only the tip of the iceberg. FSA should also investigate:

1) Widespread recommendation of UCIS

2) Structured Product counterparty concentration in RBS

3) Multi-manager offering dressed up DFM. And massively over-diversified leading to tracker-like performance....but with a TER of over 2%

4) Insitence on lodging £1million+ in cash/AUM's if you need to borrow. (How do they accomodate that in their lending APR figure?)

'Advice'(!?) which in reality is target driven sales. Backed up by untaxed sales incentives for private bankers.

Gullible customers (who should know better given their wealth) are largely ignorant to this, having been 'schmoozed' by the leather cheque-book covers, expensive lunches, invites to events, and expensive-looking marketing literature.

One thing the banks offer clients is strong brand value. I believe that any IFA business can instill similar beliefs in their clients if time and effort is put into creating a service brand (client value) they and their clients are proud of.