Seven extra banks join FSA interest rate hedge review

Seven more banks have agreed to join the Financial Services Authority's (FSA) review of sales of interest rate hedging products to SMEs.

Last month, Barclays, HSBC, Lloyds and RBS agreed to provide appropriate redress where mis-selling of the products had occurred, following a review of sales. A further seven banks - Allied Irish Bank (UK), Bank of Ireland, Clydesdale and Yorkshire banks (part of the National Australia Group (Europe)), Co-operative Bank, Northern Bank and Santander UK - have now volunteered to join the review and redress exercise. These latest banks account for about 10% of overall interest rate hedging product sales in the UK, although the regulator confirmed it has not examined their sales and theref...