Banks volunteer for hedging products review

24 July 2012

Seven more banks have put themselves forward to participate in the regulatory review of financiers' sales of interest rate hedging products to small and medium-sized enterprises.

The Financial Services Authority (FSA) has announced that Santander UK, Allied Irish Bank, Clydesdale and Yorkshire Banks, Co-operative Bank, Bank of Ireland and Northern Bank have volunteered to be part of this process.

Last month, it emerged that four major banks are being examined with regard to their sales and redress policies in this area.

And these more minor organizations - which currently control around ten per cent of the UK's interest rate hedging product sales market - are now getting involved to prove their practices are transparent.

Subsequently, the FSA has insisted it will now look to ensure these banks fulfil their commitments to customers as soon as possible.

Clive Adamson, director of supervision at the Conduct Business Unit, observed: "This is a major exercise, but one that we hope will ensure even more businesses benefit from having their individual situation reviewed."

By Gary Cooper

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