FSA review: Banks mis-sold 90% of swaps to small businesses

The Financial Services Authority (FSA) has confirmed that Barclays, HSBC, Lloyds and RBS will start the full review of their sales of interest rate hedging products (IRHPs) to small businesses after a series of failings were uncovered.

The watchdog said the announcement means that these banks have agreed to work on reviewing individual sales and providing redress to customers based on principles outlined in today’s FSA report, and overseen by independent reviewers. The decision follows intensive work by the FSA to scrutinise the pilot review of sales carried out by the banks and the independent reviewers. It confirmed the FSA's initial findings of mis-selling . The FSA looked at 173 sales to non sophisticated customers and found that more than 90% of the sales did not comply with at least one or more regulatory requ...