The Financial Conduct Authority faces the prospect of legal action after it confirmed it will not be seeking further compensation for businesses mis-sold toxic interest rate hedging products.
The Mail on Sunday can reveal that the FCA received a letter from the All-Party Parliamentary Group on Fair Business Banking on Friday, which confirmed it has instructed lawyers ahead of a possible judicial review.
Threat: The FCA has received a letter from the All-Party Parliamentary Group on Fair Business Banking, which confirmed it has instructed lawyers ahead of a possible judicial review
This follows an independent review from John Swift QC last month, which concluded that the regulator was wrong to exclude around 5,000 businesses from a redress scheme. The FCA subsequently said it would not take any further action.
This refusal has led to the APPG’s request for the FCA to reconsider its decision. But it said it is prepared to pursue legal action should it decline.
Mike Lloyd, whose pub chain in the South of England went into administration in 2012, said he has not received any compensation despite losing everything due to the interest rate swap scandal. ‘It has been the most horrendous ten years,’ he added.
An FCA spokesman said it was ‘a very different organisation from that which existed when these products were sold’ but it would still ‘not be appropriate or proportionate to take further action’.
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