Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

More than 90% of bank rate swap products mis-sold

More than 90% of bank rate swap products mis-sold

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter