Posted on Dec 06, 2013 by | 0 Comments
One the most frustrating things about the FCA’s interest rate swap review process is the amount of time it appears to take. It was mentioned time and time again during the course of the recent Westminster debate on swap mis-selling. These delays are made ever more frustrating given that the FCA pilot scheme found that 95% of cases involved non-compliant sales.
Following the debate it appears that the FCA has been exerting some pressure on the banks to speed things up. In a recent statement the FCA confirmed that it has written to the bank’s chief executives to re-assert the FCA’s expectations about redress and urge them to take practical measures to speed up the process.
It is believed that treating loss as a two stage process (i.e. separating repayment of sums paid out under the swap from consequential loss) will speed things up. This has allowed some banks to begin making offers at the lower end of the claims spectrum, prior to sending the case across to their independent reviewer. It is yet to be seen what these other further practical steps actually are.
I useful infograph of how cases are progressing through the review process can be found here.
Whilst this is all welcome, we have yet to see evidence of things actually moving any faster on the ground.
MBM Commercial LLP