Seven more banks to review swap sale

Published on 24/07/2012 00:00

Seven more banks have agreed to review the sale of complex interest rate swap products to small businesses.

The Financial Services Authority said Allied Irish Bank, Bank of Ireland, Clydesdale and Yorkshire banks, Co-operative Bank, Northern Bank and Santander UK will review the sale of interest rate swaps to SMEs. The banks have a small proportion – around 10 per cent – of the overall market for interest rate hedging products in the UK.

Barclays, HSBC, Lloyds and Royal Bank of Scotland last month agreed to compensate customers after the FSA found “serious failings” in the sale of swaps to SMEs.

Santander UK said it has already agreed to redress three “non-sophisticated” customers who purchased a type of hedging product called a structured collar.