The Treasury Committee has today published the terms of the agreement entered into by the Financial Conduct Authority with nine banks to conduct a past business review and redress exercise of their sales of interest rate hedging products (IRHPs). An accompanying letter to the banks by Clive Adamson, the FCA’s former Director of Supervision, has also been published.
Commenting on the publication, Andrew Tyrie MP, Chairman of the Treasury Committee, said:
“These documents need to be in the public domain. The FCA took far too long to cooperate and did so only after many requests and persistent pressure from the Committee.
“The agreement will allow those who are party to the redress scheme to examine the precise terms of it, in particular what redress should be provided to firms that were mis-sold these complex products. The Committee will want to reach a judgement on whether the process provides fair and reasonable redress.
“The Committee remains very concerned that terms of the FCA’s redress scheme may, in some cases, have provided banks with an opportunity not to provide meaningful redress. Many firms feel that this process has unfairly favoured the banks.
“The Committee expects to comment further on the scheme in its forthcoming report on SME lending.”