Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a655001
More than 90% of bank rate swap products mis-sold
by David Campbell on Jan 31, 2013 at 07:32
More than 90% of interest rate hedging product sales by the big four banks to 'non-sophisticated' customers failed to meet regulatory standards, a Financial Services Authority report has found.
HSBC, Lloyds, Barclays and RBS have all committed to open full reviews of their sales procedures, said the FSA, following the launch of its interim investigation into interest rate hedging products (IRHP).
'This marks significant progress in our review of these products,' said Martin Wheatley, chief executive of the Financial Conduct Authority, which will take over retail financial regulation later this year.
'We believe that our work will ensure a fair and reasonable outcome for small and unsophisticated businesses.
'Small businesses will now see the result of the review as the banks look at their individual cases. Where redress is due, businesses will be put back into the position they should have been without the mis-sale.'
Following last year's revelations of Libor manipulation and the first of the big regulatory penalties, civil cases bought in the US over interest rate hedges are among the banking sector's biggest liabilities.
The FSA is continuing to investigate sales by Allied Irish Bank, Clydesdale and Yorkshire banks, the Co-Operative Bank and Santander UK, and hopes to publish its findings next month.
News sponsored by:
Subscribe to Wealth Manager magazine and rack up CPD points
Citywire Wealth Manager has partnered with CISI to enrich the experience of subscribers to our magazine.
Today's top headlines
More about this:
Look up the shares
What others are saying
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
by Dylan Lobo on May 16, 2013 at 16:17