Mis-sold Interest Rate Swaps

In 2012, the FSA carried out a review into the sale of Interest Rate Hedging Products (IRHP’s) to small and medium sized businesses; from this review the FSA found ‘serious failings. In March 2013, the FSA published partial results of a ‘pilot review’ carried out in the sale of 40,000 IRHP’s to ‘non-sophisticated customers’. During the review, the FSA looked at 173 sales and found that over 90% of the sales failed to comply with one or more of the required regulatory elements. Since these findings, public attention has been drawn to this mis-sold financial product, it has also been featured on the BBC, awareness continues to grow over this issue and the detriment it has had on businesses and consumers.

What is an Interest Rate Hedging Product or SWAPS?

Obligations of the Adviser or Sales Person for mis-sold Interest Rate SWAPS

How was this service mis-sold?

Compensation

Additional Information

Downloadable PDF’s

Technical Information

Provided by FOS

Financial Services Authority, Pilot Findings

Provided by FSA

HMR IRHP Redress Factsheet

Provided by HMR Revenue & Customs

Banks Progress Position