Projected cost of rate hedge mis-selling rises

SME growth graph

The investigation of interest rate hedge mis-selling by the UK Financial Conduct Authority (FCA) is nearing the end of its first stage, but rising payouts mean that the total bill for the banks at fault could be far higher than originally thought. As of October 30, all but 1,853 of the 29,817 business customers involved in the review had completed a 'sophistication assessment', intended to determine whether or not they were potentially suitable counterparties for an interest rate derivative s