FCA Publishes its First Progress Report on the Banks’ Reviews of Sales of Interest Rate Hedging Products

    View Author September 2013

    Interesting statistics are contained in the first FCA report on banks' reviews of sales of interest rate hedging products. The full review began in May 2013. So far, just over 15,000 customers have been assessed as “non-sophisticated” and so qualify to be included in the review. Around half of these have already opted in. The first letters offering compensation have been sent out and, so far, 10 businesses have accepted offers of redress, totalling £500,000. The FCA expects this figure to increase rapidly over the coming months. 210 offers have already been sent out to customers and a further 1,700 offers are due to go out shortly. In light of this progress, the FCA expects that most customers will be informed of the result of their review, and of any possible basic redress, by the end of 2013.

    They are going to provide monthly updates on the progress of banks' reviews, including information on the redress offers accepted by customers.