Compliance

Ex-Coutts Banker Wins Dismissal Case

Tom Burroughes Editor London 10 November 2008

Ex-Coutts Banker Wins Dismissal Case

A former banker atCoutts was wrongfully dismissed from his job at the UK private bank, a UK employment tribunal has ruled.

Paul Scott was sacked from his job as senior private banker in July last year after a dispute about payments relating to a trip to the 2007 European Cup final football game. An employment tribunal in Liverpool said Mr Scott was unfairly and wrongfully dismissed by Coutts. The tribunal also stated that Mr Scott “did not contribute to his dismissal such that it would be just and equitable to reduce any award of compensation”.

Coutts declined to comment on the matter when contacted by WealthBriefing. A further hearing is due to be held to consider compensation to Mr Scott.

In a summary of the case, the tribunal said that the case related to a trip to Athens in late April, 2007. Mr Scott organised a trip to the match and a number of people involved in the trip were his personal banking clients. The members of the travel party would pay about £500 each into his personal bank account, held with Coutts. He would then make the appropriate payments to the travel company, the statement said.

Under the arrangement, a number of those paying into his personal account would make payments via the Clearing House Automated Payment System, which normally carries a fee of £25. However, Mr Scott indicated to these clients that fees would be waived in their cases, the tribunal report said.

When the arrangement came to light, Mr Scott’s manager told him he should have made it clear to the travel party that the trip was personal and not connected to Coutts. A number of people going to the trip collected their tickets from Coutts’offices.

Mr Scott was fired in July. He appealed the decision, which was rejected by Coutts.

Giving its findings, the tribunal said “it was undoubtedly the case that Mr Scott had discretion to waive such [CHAPS] fees and the purpose of such a waiver was clear”. The report said it had never been alleged that Mr Scott derived any direct personal benefit from waiving the fees.

 

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