Clive Adamson, director of supervision at the FCA said:
“Redress is now rapidly flowing to small businesses. However, our focus will remain on ensuring that during the decision process affected business owners are treated fairly and that banks remain on course to get their initial offers of compensation out by the end of May.”
View the latest figures on the Interest Rate Hedging Product redress scheme.
The latest figures
Click below to see the number of sales at each stage of the review. In response to feedback from customers, we have included granular information about sophisticated customers, customers who have not opted in to the review, and about the types of alternative products that some customers are being offered as redress.
Number of sales at each stage – overall view
Number of sales at each stage – bank-by-bank view
Progress by bank – projection vs actual
This table summarises the banks’ progress and the position at the end of January:
|
|
Aug |
Sep |
Oct |
Nov |
Dec |
Jan |
|
Joining the review |
|
|
||||
|
Sophistication assessments completed |
80% |
90% |
94% |
98% |
99% |
100% |
|
Customers invited to join review |
15,000 |
16,000 |
17,500 |
18,400 |
18,700 |
18,700 |
|
Overall customer opt-in rate |
50% |
65% |
70% |
76% |
78% |
81% |
|
Compliance |
|
|
||||
|
Compliance assessments complete (% of customers who have opted in) |
8% |
12% |
25% |
34% |
48% |
57% |
|
Overall rate of non-compliant sales |
93% |
95% |
95% |
95% |
96% |
96% |
|
Redress |
|
|
||||
|
Customers in redress phase |
1,950 |
2,600 |
4,100 |
6,100 |
7,500 |
9,000 |
|
Redress determinations complete (including compliant and non-compliant sales where no redress is due) |
500 |
950 |
1,850 |
3,300 |
5,200 |
7,000 |
|
Redress determination letters sent (including compliant and non-compliant sales where no redress is due) |
250 |
500 |
1,300 |
2,600 |
4,600 |
6,400 |
|
Outcomes |
|
|
||||
|
Offers accepted (‘full tear up’ and alternative product offers) |
10 |
32 |
125 |
547 |
1,040 |
2,092 |
|
Redress paid |
£0.5m |
£2.0 |
£15.3m |
£81.2m |
£158.6m |
£306.3m |
|
Outcomes where no redress is due (including compliant sales) |
78 |
112 |
253 |
438 |
672 |
682 |
The latest figures show the pace of the banks’ reviews is continuing to increase. The banks’ projections for completion of their reviews can be seen in the third link above. These show that the banks remain on track to provide a redress determination to all customers within 12 months of starting their reviews.
Background
- Further information on the Interest Rate Hedging Products’ redress scheme can be found on the FCA’s website.
- On the 1 April 2013 the Financial Conduct Authority (FCA) became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers
- You can find more information about the FCA, as well as how it is different to the PRA, on our website.
