Question

To ask the Secretary of State for Business, Innovation and Skills, what recent discussions he has had with the Financial Conduct Authority on the interest rate swap redress scheme.

We have asked the Chief Executive of the Financial Conduct Authority (FCA) for an assurance that redress offers which take the form of a substitute hedging product are only being offered where it is fair and reasonable to do so. In response, the FCA has said that robust oversight and challenge processes are in place to ensure that this is the case and that a replacement product offer can only be made if an independent reviewer is satisfied that there is sufficient evidence to support the decision.

In addition, my officials liaise regularly with the FCA to draw the regulator’s attention to swaps redress cases that have been raised with the department where we think this is justified.