Banks have paid over £300m in redress to businesses who were missold interest rate swap products, official FCA figures show.
The regulator first raised concerns about the ways banks sold interest rate swaps in June 2012. The FCA carried out a review of 173 sales of interest rate swaps and found that over 90 per cent did not comply with regulatory rules.
As a result the banks agreed to review the sale of interest rate swaps, which are designed to protect consumers against increases in interest rates. Over 30,000 sales are being reviewed, covering sales dating back to 2001.
The latest figures from the regulator show total redress payouts reached £306.3m at the end of January, with 2,092 redress offers accepted.
FCA director of supervision Clive Adamson (pictured) says: “Redress is now rapidly flowing to small businesses. However, our focus will remain on ensuring that during the decision process affected business owners are treated fairly and that banks remain on course to get their initial offers of compensation out by the end of May.”
The banks involved in the interest rate swap review are Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland, Santander, Clydesdale and Yorkshire Banks, Co-op Bank, Allied Irish Bank and Bank of Ireland.