THE row between Sir Keith Mills and Coutts has escalated with the Nectar loyalty card tycoon demanding the private bank guarantee the future of a controversial savings scheme from AIG, the stricken American insurance group.

Mills, who played a leading role in winning the 2012 Olympics for London, has begun a public campaign against Coutts, last week taking full-page adverts in national newspapers asking for other disgruntled investors to join an action group. The row is over AIG’s Life Premier Bonds, which Coutts sold to clients. They have fallen in value, despite customers claiming they were told the bonds were a safe investment.

Mills and some other investors have now agreed to an AIG proposal to freeze their assets, with an assurance that their principal investment will be returned in three-and-a-half years. He said yesterday that Coutts should offer its own guarantee on this promise. If it did not, he would consider legal action for mis-selling.

“Coutts have a duty of care here, and having agreed to this rollover, with no interest on my money, I want them to stand behind it themselves if the investment gets into further trouble,” Mills said.

RBS, which owns Coutts, yesterday denied the bank had mis-sold the bonds, saying: “At the time of sale it was made clear that the investment was low-risk but not risk-free.”

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