Deadline announced for interest rate swap cases

Published: 06/02/2015

Businesses mis sold an interest rate swap only have until 31 March 2015 to join the Financial Conduct Authority’s (FCA) Interest Rate Hedging Product (IRHP) Review Scheme, chief executive Martin Wheatley has confirmed.

It is understood that 89 per cent of identified and invited businesses have signed up to the review thus far. However there remain thousands of affected businesses, particularly those who were sold cap products.

Customers who purchased a cap product will only be included in the review if they actively complain; they will not be given the same opportunity to ‘opt in’ as those sold swaps and collars.

Senior partner, Simon Cottrell, comments:

“I understand the need to implement a deadline for the FCA Review Scheme. However I hope businesses are made aware of the looming date to ensure those that are eligible for redress do not miss the boat.

“This is particularly important for those sold a cap product as the onus is very much on them to complain in order to be included within the scheme. Thus far only 1,000 of 7,000 have done so and now there is only a matter of weeks left.

“It is vital all businesses sold any variation of a swap enrol into the scheme before seeking independent legal representation as it is unclear if there will be any opportunity to pursue a claim once the deadline passes.”

Content correct at time of publication