The wealth management arm of Lloyds TSB and Coutts, part of Royal Bank of

Scotland, yesterday rebutted a news report suggesting they have asked clients to put more money into portfolios that have lost value.

The news service Citywire, citing unnamed sources, alleged Lloyds TSB Private Banking and Coutts had contacted clients requesting that they top up portfolios which had fallen below minimum threshold values. 

One source, an anonymous financial planner, was quoted as saying that he had been approached by a client of Coutts who had been asked to top up a portfolio in mid-November after it fell below £200,000, compared to an initial £500,000 investment. 

The news service also said that, according to private client sources, Lloyds TSB Private Bank had contacted clients whose portfolios had fallen below £250,000.

However, the idea that clients are being expected to put up more money to meet thresholds when their portfolios may have been hit by the credit crisis was met with some surprise from the firms, both of which urged the anonymous clients on which the report was based to get in contact.

"It is absolutely not our policy to approach clients in this way. Lloyds TSB prides itself on its relationship-based business model and we aim to support our customers through good times and bad. In fact, we are being more flexible with respect to our clients' funds in response to the continued turbulence in the financial markets,” a spokesperson for Lloyds TSB told WealthBriefing.

"We would strongly urge any investors who have been contacted with such a request to get in touch with our head office so that we are able to investigate the matter thoroughly," the spokesperson added.

A spokesperson for Coutts said:  "Without knowing the specifics or particular details of the client, any comment that we would give would be purely speculative. We would suggest this particular client meets with Rob Currie, managing partner of the City office to have their concerns listened to and addressed."

Private banks, it should be noted, reserve the right to alter minimum investment or account thresholds for a variety of reasons, such as client segmentation.