Martin Berkeley (FCA Authorised Senior Consultant at Vedanta Hedging) was interviewed as a Derivative Expert by BBC Radio 4’s programme, ‘How you pay for the city‘ on the topic of swap mis-selling. Martin was interviewed by Phil Kemp and David Grossman of the BBC. This is the second time Martin has been asked by the BBC to give expert advice on derivatives.
Martin talks about how the profits were so large for some derivatives citing actual numerical examples from one of our clients. This shows the importance of having market recognised pricing software (as we use) to substantiate these numbers. Some firms (typically non-authorised firms) have created their own in-house excel based pricing software, which will not be accepted in a legal case or High court.
Martin described how one SME client was over-hedged and how other suitable products would have generated far less profit for the Bank.
Martin also discussed how some Banks apply mis-leading or false market information to SMEs in order to encourage them to agree to a hedging deal
to listen to Martin’s audio clip click here Martin Berkeley BBC Radio 4 interviewed on swap mis-selling
to listen to the full section on derivatives click here BBC Radio 4 Swap Mis-Selling 17th August 2013