View more on these topics

FSA denies big firms interest rate swap complaints scheme

Natalie Ceeney

The FSA refused an offer from the Financial Ombudsman Service to create a specialist unit to deal with interest rate swap misselling claims from larger firms.

Speaking to the Parliamentary Commission on Banking Standards today, deputy chief executive Tony Boorman said it had been forced to turn away a lot of complaints from medium to large businesses.

FOS can only act as an adjudicator for small businesses and individuals, while larger firms are expected to settle disputes through the courts. Labour MP Andy Love raised concerns about larger firms’ access to the FOS.

Boorman said: “Any boundary of jurisdiction is a problem. The definition of micro-enterprise is not always as straightforward as one might like. We have turned away a lot of enquiries on the basis of our jurisdiction.

“The FSA looked at it and we, very proactively, offered the possibility of a particular special scheme but it concluded that it wasn’t necessary. It thought there is a sensible boundary already and as a general principle we don’t disagree.

“Large businesses should be using a court for their disputes while small business and customers at home should use an organisation like ourselves.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm