Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether the Financial Conduct Authority made an estimate of the potential liability of (a) Lloyds and (b) RBS under the interest rate hedging products redress scheme during the development of that scheme.

Whether the Financial Conduct Authority (FCA) made an estimate of the potential liability of any banks is a matter for the FCA. However, it is reasonable to assume that for any conduct issue that arises, the FCA would seek to understand the potential financial impact.

Several meetings took place between Treasury Ministers and the FCA in January 2012 (then the Financial Services Authority), although I understand that FCA’s interest rate hedging products redress scheme was not on the agenda for any of these meetings.