• Text size      
  • Send this article to a friend
  • Print this article

FSA raps banks over interest rate swaps

Six banks are to review sales of interest rate swap products to small businesses after a damning initial review by the Financial Services Authority.

An FSA pilot check found more than 90% of sales by Santander UK, Allied Irish Bank, Bank of Ireland, the Co-operative Bank and Clydesdale and Yorkshire banks did not comply with one or more of the regulatory requirements.

The regulator said a significant proportion of those cases could trigger compensation claims from customers.

However, it warned the results were unlikely to be representative of the full review "given the small sample size from these banks and the more complex nature of sales in the pilot".

The big four banks – RBS, Lloyds, Barclays and HSBC – have already begun assessing compensation claims after the FSA found they had mis-sold interest rate swap products.

Contextual targeting label: 
Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

140995