Banks to review hedging products
July 24, 2012, Tuesday
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Print Edition
Print Edition
SEVEN more British banks have agreed to review past sales of interest-rate hedging products to small businesses and to compensate customers for any mis-selling which may have occurred, Britain's financial regulator said yesterday.
Allied Irish Bank, Bank of Ireland, Clydesdale and Yorkshire banks, the Co-operative Bank, Northern Bank and Santander UK have now also agreed to participate in the FSA's review.
A string of mis-selling cases has beset Britain's financial services industry for more than two decades. Banks are already set to pay more than 9 billion pounds (US$13.96 billion) in compensation to customers for mis-selling loan insurance.
The Financial Services Authority said in June that Britain's four biggest banks - Barclays, HSBC, Lloyds and RBS - had agreed to pay compensation to customers they misled about such products.
The FSA said the seven banks make up around 10 percent of the overall market for interest-rate hedging product sales in Britain. It added it had not examined their sales, thus no mis-selling has been found to date.
"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," the FSA said.
Allied Irish Bank, Bank of Ireland, Clydesdale and Yorkshire banks, the Co-operative Bank, Northern Bank and Santander UK have now also agreed to participate in the FSA's review.
A string of mis-selling cases has beset Britain's financial services industry for more than two decades. Banks are already set to pay more than 9 billion pounds (US$13.96 billion) in compensation to customers for mis-selling loan insurance.
The Financial Services Authority said in June that Britain's four biggest banks - Barclays, HSBC, Lloyds and RBS - had agreed to pay compensation to customers they misled about such products.
The FSA said the seven banks make up around 10 percent of the overall market for interest-rate hedging product sales in Britain. It added it had not examined their sales, thus no mis-selling has been found to date.
"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," the FSA said.
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