The Treasury Select Committee has criticised the FCA IRHP Review scheme for mis-sold derivatives to SMEs.
Martin Berkeley of Vedanta Hedging has been quoted in this report regarding the expensive pricing applied to replacement products offered in the Review process (which then reduces the redress that SMEs receive).
Vedanta Hedging has been asking for independent oversight of the process for more than 2 years. This is because we understand how the Banks have been able to manipulate the rules of the Review scheme, since we ourselves are FCA authorised to advise on these products.
Martin’s quote is below:
Martin Berkeley of Vedanta Hedging, a derivatives consultancy, said “the replacements are quite expensively priced and are often not particularly suitable or perhaps what a client would have chosen”
The full report can be found here: