The FCA has received 250 complaints about a redress scheme set up for people who had been mis-sold interest rate hedging products in the 10 years to 2011.
In response to a complaint lodged with the industry watchdog, the FCA revealed how many people had complained about the redress scheme.
A report by the complaints commissioner, published this month (October 19), responds to one of the claimants of the scheme who believes they were not compensated enough for their losses.
The commissioner, Amerdeep Somal, said the complainant’s only option was to bring up the issue against their bank, or take legal action against them.
Though the complaint to the commissioner was not upheld, Somal recommended that “in the interests of transparency” the FCA should answer their query about how many complaints it received in respect to its involvement with the redress scheme.
The FCA responded to confirm it had received a total of 250 complaints.
Two years ago, the FCA committed to greater transparency in the wake of a review into the interest rate hedging product redress scheme.
The independent review by John Swift QC found shortfalls in the processes, governance and record keeping when decisions about the redress scheme were made, as well as a lack of transparency.
In response to the complainant’s concerns, Somal concluded: “You have pointed out to me the many questions which the Swift Review allegedly left unanswered as well as the many criticisms it made about the FCA.
“Ultimately, you do not see how, given this, a conclusion can be reached that overall, the scheme was a success. I note your concern, however, my view remains that I have no good reason to go behind or overturn the Swift Review findings.”
Following the Swift Review, the FCA said at the time: “The FCA will ensure that any significant decisions on redress made in the future will be transparent, with appropriate governance, and supporting evidence will be properly recorded.”
The FCA was contacted for comment.
tara.o'connor@ft.com
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