Our entire team continues to work hard with various MPs (including Ministers) and Lords from all the main parties on this important issue of swap mis-selling.
On the 12th June, this issue was again debated in Westminster. Some interesting and concerning comments were made.
Note that Bill Wiggin is a former banker and cites the example of one of his constituents, who was sold a bermudan multi-callable swap by HSBC.
It should be noted that the FCA Review does not consider this product to be a ‘Category A’ redress product which is baffling, given its complexity.
Sajid Javid MP (Economic Secretary to the Treasury)
Sajid Javid argued that those outside the FCA’s review criteria were likely to have advisors or staff with the skills to advise the directors on these issues.
We find this very hard to believe, given that only derivatives experts (authorised by the then FSA) could give advice on derivatives.
Sajid stated that those not in the review are firms that have the responsibility for understanding the products they entered into.
Sajid Javid also said that the ‘floodgates’ would open if all SMEs were allowed to make claims.
Tessa Munt MP
Tessa argued that if an SME has fallen into administration, there could be a conflict of interest because the Bank has appointed the Administrator.
(This is a topic we have been working hard with various Government bodies and the FCA to resolve)
Sajid Javid agreed to discuss this with Vince Cable MP
The full record of the debate can be found here: