A CROSS-PARTY group of MPs has tabled a Commons early day motion highlighting that 'embedded swap' small business loans sold by Clydesdale and Yorkshire banks are excluded from the current regulatory review .

The motion, tabled by Scottish LibDem MP John Thurso and backed by several members of the Treasury Committee, says "while fixed rate swaps purchased as an independent product are included in the current Financial Conduct Authority (FCA) review scheme, swaps embedded in businesses loans are not".

"Many of these embedded swaps were sold without proper explanation of either the conditions or costs; understands these products are not regulated by the FCA; and therefore calls on the government to ensure there is proper regulation in the future."

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