Coutts & Co has put aside £110 million to cover the costs to compensate clients who are found to have been sold unsuitable investments.
The news comes after Wealth Manager revealed the private bank was conducting a suitability review dating back to 1957. Chief executive Michael Morley (pictured) has written to all UK clients to warn that in accordance with the FCA it will review the suitability of all investment portfolios.
The Queen's bank will review the suitability of investment advice given in the UK up to 26 November 2012, the date Coutts implemented the retail distribution review (RDR) and changed its advice process.
In a subsequent interview with Wealth Manager, Morley said: ‘As we approached the RDR it became very clear to me that we needed to put in place a service that looked and felt very different to the process we had before. We wanted to set the standard for what we thought it should look like in the new world.
He added: ‘If we didn’t apply that historically, can we say with absolute certainty and conviction that all of our investment sales have genuinely been suitable?
‘The only way to get this certainty was to go back and look at every investment our clients have had at the date of implementation by Coutts of the RDR on 26 November 2012.’
It has subsequently emerged that the review would include financial planning products, such as offshore insurance bonds, which is likely to increase the potential compensation bill.