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Bad HSBC

Interest-rate hedging products mis-sold to small businesses

In 2012 the FSA found serious failings in how HSBC, Barclays, Lloyds and RBS sold interest-rate hedging products to small and medium-sized businesses. All four agreed to pay redress.

Redress

On 29 June 2012 the FSA announced it had found serious failings in the sale of interest-rate hedging products, including swaps, to small and medium-sized businesses. It reached agreement with Barclays, HSBC, Lloyds and RBS to provide redress where mis-selling had occurred.

Banks sold around 28,000 of these products from 2001. In December 2024 the FCA faced a High Court challenge from people excluded from the redress scheme.

The evidence

3 sources
  1. Exhibit AFSA agrees settlement with four banks over interest rate hedging productsFSA statement, reproduced by Mondo Visione · 29 June 2012 · mondovisione.comOfficial record
  2. Exhibit BInterest rate hedging productsFinancial Conduct Authority · fca.org.ukOfficial record
  3. Exhibit CFCA accused of unlawful conduct in bank redress caseCyprus Mail (Reuters) · 11 December 2024 · cyprus-mail.com

Last checked 2 November 2026. Something wrong or out of date? Tell us and we’ll correct it.

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