Seven more banks join FSA review of sales of interest rate hedging products to SMEs
The Financial Services Authority (FSA) has announced that seven more banks have volunteered to review their sales of interest rate hedging products to SMEs.
Allied Irish Bank (UK), Bank of Ireland, Clydesdale and Yorkshire banks, Co-operative Bank, Northern Bank and Santander UK have confirmed that they will take part in the review of the sale of these products and the redress exercise, on the same basis as those larger banks which signed the agreement that was announced on 29 June.
The latest banks to join the review hold a small proportion (around 10%) of the overall interest rate hedging product sales in the UK, but in agreeing to join the review, they are ensuring customers that bought these products will be treated consistently, irrespective of who they bank with.
With eleven banks now signed up, the FSA has been working to determine the terms of reference for their independent reviewers. The process gives each customer the right to have an independent reviewer present during any meetings or calls with the bank. The FSA expects the banks to proceed rapidly with their reviews.
Clive Adamson, director of supervision in the Conduct Business Unit, said:
“I am pleased that these banks have agreed to join the larger banks in reviewing their past sales. Although the number of their sales was smaller and while there is no presumption that mis-selling has occurred, it shows their willingness to do the right thing and ensure their customers who bought these products can be confident that they will be treated on an equal basis.”