The city regulator can sue after confirming that it does not require additional compensation for businesses that incorrectly sell toxic interest rate protection products.
The Financial Conduct Authority will be able to take legal action once it confirms that toxic interest rate hedging products do not require additional compensation for businesses that sell them incorrectly.
The Mail on Sunday reported that the FCA had received a letter from the All-Party Parliamentary Group on the Fair Business Bank on Friday, confirming that it had instructed lawyers before a possible trial.
Threat: The FCA has received a letter from the All-Party Parliamentary Group on Fair Business Bank, which confirmed that it had instructed lawyers before a possible trial.
This came after an independent inspection by John Swift QC last month that the regulator concluded that it was wrong to exclude nearly 5,000 businesses from the correction scheme. The FCA later said it would take no further action.
This refusal led the APPG to ask the FCA to reconsider its decision. But he said he was ready to take legal action if he refused.
Mike Lloyd, who took over the management of a pub network in the south of England in 2012, said he had not received any compensation despite losing everything due to an interest rate swap dispute. “It’s been the most horrible decade,” he added.
An FCA spokesman said it was “an organization that is very different from the organization that exists when these products are sold”, but still “additional measures are not appropriate or proportionate”.
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