Mr Smith is suing high-profile Hertfordshire-based financial adviser Neil Caisley, documents from the Court of Session in Edinburgh reveal.
The 70-year-old, who also had a stint at Manchester United in 2004 as Sir Alex Ferguson’s assistant, is also taking legal action against Gareth Alexander, also of Hertfordshire.
They are both former directors at Chelmsford-based ProVision Financial Consultants, which was dissolved on 22 April 2014 according to Companies House records.
The former Scotland manager’s action is over money paid into a pension fund while he was in charge at Goodison Park in the 1990s.
Mr Smith alleges that Mr Caisley and Mr Alexander agreed to return £600,000 they received in commission but only paid him £280,000.
The case will be heard by Judge Lord Bannatyne and a full hearing is due to take place later this month.