Banks to redress clients over 'swaps' mis-selling

clock •

Four banking giants including HSBC and scandal-hit Barclays are to provide redress to business clients mis-sold specialist insurance on loans, the Financial Services Authority (FSA) has said.

The regulator said the banks mis-sold the products known as swaps, which were meant to protect businesses against rising interest rates but which came with huge costs if rates fell, to thousands of small and medium-sized businesses. The FSA said it had found "serious failings" in the sale of these products, and the BBC reports that four banks - Barclays, HSBC, Lloyds and RBS - are to redress clients. The banks have also agreed to stop selling the products. The development comes just days after Barclays was fined a record £59.5m, on top of other penalties from US authorities, for LI...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Treasury Committee flags potential bank tax Budget leak to FCA and Treasury

Treasury Committee flags potential bank tax Budget leak to FCA and Treasury

Dame Meg Hillier pens letter after Bloomberg article went live at 10:45am

Isabel Baxter
clock 29 October 2026 • 3 min read
FCA stands firm on not advocating for legislative change on AI

FCA stands firm on not advocating for legislative change on AI

‘That is the appropriate proportionate response’

Sophia Panayi
clock 22 October 2026 • 2 min read
FCA deputy CEO confirms simplified advice rules will  be published 'soon'

FCA deputy CEO confirms simplified advice rules will be published 'soon'

Sarah Pritchard speaks at the Investment Association Annual Dinner

Sophia Panayi
clock 22 October 2026 • 2 min read