FCA figures suggest true cost of rate hedge mis-selling

Barclays Bank sign
Barclays has set aside £1.5 billion to cover mis-selling claims

Settling the first 10 cases of mis-sold interest rate hedging products has cost UK banks £500,000, but thousands more cases are still in the pipeline, with total costs likely to run into the hundreds of millions. The UK Financial Conduct Authority (FCA) today released a report on the first four months of the review of potentially mis-sold interest rate derivatives, including structured collars, swaps, simple collars and caps. Major UK banks are reviewing 30,169 cases in which the produc