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Big four banks mis-sold 90% of interest rate swaps

Big four banks mis-sold 90% of interest rate swaps

Britain’s big four high street banks mis-sold over 90% of interest rate swap products, a Financial Services Authority (FSA) report has revealed.

The regulator’s investigation into interest rate hedging product sales by Barclays, HSBCLloyds and RBS found that 90% did not comply with at least one or more regulatory requirement.

The FSA looked at 173 sales to non-sophisticated customers. The watchdog said that a significant proportion of these 173 cases were likely to result in redress being due to the customer.

Following the FSA’s finding Barclays, HSBC, Lloyds and RBS will start the full review of their sales of interest rate hedging products to small businesses. 

The banks have agreed to work on reviewing individual sales and providing redress to customers based on principles outlined in the FSA report, and overseen by independent reviewers.

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