View more on these topics

MPs want swap sale probe

MPs are preparing to file an official request to the Treasury select committee to launch an inquiry into the potential misselling of interest rate swaps.

The swaps are designed so banks cover the cost of increased payments in the event of interest rate rises while, if rates fall, the customer has to pay the bank.

Conservative MP for Aberconwy Guto Bebb says 41 MPs agreed to submit the request to the TSC and apply for a backbench business debate at a meeting he arranged in Parliament last week.

He said the MPs were briefed by lawyers involved in taking misselling cases to court who told them sales staff misrepresented the products, many of which were sold between 2006 and 2008.

Speaking to Money Marketing, Bebb says: “I do not think there was an anticipation rates would fall from 5.5 per cent to 0.5 per cent and stay there for as long as they have but they were sold to guard against the possibility of rate increases. The bear trap is that people were not made aware of the downside that if rates did fall they would face penalties.

“Some of the cases we have seen show these are not only inappropriate products but were also missold deliberately.”

Johnston Financial Services managing director Adrian Johnston says: “The FSA should be looking at this but it has a first-class honours degree in shutting stable doors.”

Recommended

Investec rethinks Africa and Middle East funds

Investec Asset Management is to consolidate its Africa and Middle East range in a move that will see two funds merged and another wound down. The firm is merging its offshore £11.6m Investec GSF Africa and Middle East fund and £11.6m Investec GSF Middle East and North Africa fund into the £50.2m Investec Africa opportunities […]

Investec restructures Middle East and Africa fund range

Investec is restructuring its Middle East and Africa fund range in a move that will see two funds merged and another wound down. The firm is merging its offshore £19.6m Investec GSF Africa and Middle East fund and £11.6m Investec GSF Middle East and North Africa fund into the £50.2m Investec Africa opportunities fund. The […]

1

Lenders hike NewBuy rates less than 2 months after launch

Lenders have increased the rates on products they developed for the Government’s indemnity guarantee scheme less than two months after its launch. Under the NewBuy scheme, which launched in March, lenders offer 95 per cent loan-to-value mortgages on new-build properties against a mortgage indemnity guarantee funded jointly by builders and the government up to 9 […]

Leek United BS caps interest-only LTV at 50%

Leek United Building Society has become to latest lender to tighten its interest-only criteria by limiting its maximum loan-to-value on this type of lending to 50 per cent. Previously the building society lent up to 75 per cent LTV on an interest-only basis. The building society has also placed a minimum property valuation of £100,000 […]

2

Britain's “Forgotten Army”: The collapse in self-employed pension membership – and what to do about it

Pension scheme membership among employees has risen by more than five million in the past four years because of the policy of automatic enrolment into workplace pensions. But Britain’s army of 4.4 million self-employed people, who account for one in seven of the workforce, are not covered by automatic enrolment. Pension coverage among the self-employed […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com