Barclays 'forced to issue FSA apology'

19 March 2012

A major UK bank has issued a formal apology to the Financial Services Authority (FSA) body after it emerged it had broken the regulator's rules.

According to evidence obtained by the Sunday Telegraph, Barclays told its clients to withhold information from the body regarding its sales of "swap" products.

The news source recently launched an investigation focused on the company's potential mis-selling of complex interest rate packages and this process has resulted in the FSA forcing Barclays to inform affected businesses they are not bound by confidentiality agreements anymore.

During this analysis, it was revealed that a number of leading banks in the UK are now facing legal action from firms on the basis they inappropriately sold these products without providing them with sufficient information.

And the FSA has now stated it is reviewing the "new information" regarding Barclays provided by the Telegraph's investigation.

"If we find widespread evidence of breaches or mis-selling we will take action," a spokesman for the body pledged.

By Asim Shah

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