Update from Keith Mills to respondents 20/03/09

Introduction

I have received an overwhelming response to my campaign to bring Coutts to account with hundreds of emails from other customers, many of whom were persuaded by the bank to invest in AIG Life Premier Bonds. Some of these people have also taken the time to fill out a questionnaire regarding the advice they received from Coutts and their circumstances. In many cases the responses came from loyal customers who had banked with Coutts for up to 50 years and trusted the bank implicitly. In fact, all of the respondents said they relied totally on Coutts advice when deciding to place their savings into the AIG Bonds. Many were also told it was a safer alternative to a bank deposit and were continually advised to keep their money in the fund right up until September 15, 2008 when it closed. As described by one longstanding customer: "Simply put, Coutts misrepresented the investment strategy of the AIG Enhanced Fund."

Summary of our key findings:

• Three-quarters of respondents were advised that AIG Life Premier Bonds were a low-risk alternative to a deposit account
• Half of all respondents were told that, through the Financial Services Compensation Scheme, 90 percent of their capital was protected - offering greater capital security than a bank or building society account
• All of you said you trusted Coutts completely to give you the correct advice
• Two-thirds of respondents said you were told your funds were invested in bank deposits, cash and money market instruments
• Nearly half of respondents said you were advised by Coutts that AIG bonds were a safe investment right up until the Enhanced Fund was frozen
• Nearly half of respondents said they were planning legal action, provided it was part of a group initiative
• Almost all respondents had registered with the AIG Victims' Web site, though few were actively participating in their campaign
• Almost all respondents had yet to complain to the FSA or FOS

Sample Quotes

"I emphasised that I wanted a "no risk" position and I was given a verbal assurance that this was the case. I acted on trust."

"It was described as the safest vehicle in which to keep our money - and there were no other vehicle of comparable safety - so we were encouraged to put all our money into it."

"Their [Coutts] senior financial planning specialist even asked my personal Coutts manager to call me and recommend AIG as a "no brainer decision," as I am very conservative when investing in anything outside my personal control."

"They persuaded me against my better instincts that it was the safest thing to do with my money at that time...I made it clear that I was solely looking for capital protection at a time when financial institutions were going bust and that I was not interested in chasing the extra percentage point."

"I will be seeking legal redress for as blatant a case of mis-selling as it is possible to find."

"We were assured in writing the both bonds were as good as traditional bank of building society deposits...I do not think we need to debate the meaning of traditional with a Bank that proudly claims a 300-year history of fundamental values."

Conclusion

The responses to the questionnaire show that, like me, many customers were persuaded to believe their money was safe in AIG Life Premier Bonds - even safer than in a deposit account. When customers expressed concerns over their investment they were continually reassured and told to keep their money in the bond. One respondent said: "All through 2008, especially during the summer, I queried Coutts about the health of AIG. I was told, right up until and including September 15th that the house view was that my investment was ring fenced and safe." We all now know that this was not the case. Thank you to all those who responded - hopefully this survey will help to persuade Coutts/RBS that it is in their best interests to reach a settlement with their customers with regard to the advice that they gave relating to the AIG Life Premier Bond.