Non sophisticated customers
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30 June 2012
FSA identifies victims as non
sophistacted, you are even insulted when you've been wronged.
Yesterday the FSA published a press release
and a useful fact sheet <http://www.fsa.gov.uk/static/pubs/other/interest-rate-hedging-products.pdf>
confirming it had agreed a settlement with four banks over mis-selling
of interest rate swap and other hedging products.
Many SMEs suffered. Many bright, intelligent, well educated and worthy
individuals were ripped off by hopelessly greedy people. Sadly the
greedy people are sophisticated and the victims are not sophisticated.
The failings (estimated to have started about 2001) were serious and
included the usual inappropriate behaviour as the 4 high street banks
continued to sell complex varieties of interest rate hedging products,
failing to ascertain the customers' understanding of risk, failing to
advise on non-advised sales and over hedging.
Many individuals were highly rewarded as their greed took over. It was
only a matter of time before they were found out. The FSA and the four
banks have agreed to compensate fair and reasonable redress to non
Have you noticed we are called non-sophisticated as if this con is
based on a complex art, bordering on molecular science when it's really
a question of ethics and morality. If a client comes to see me and I
advise them, they would expect to be treated fairly, ethically and
above all I must not deceive the client and confuse them as they too
are not sophisticated (whatever that means).
In short the greedy have systematically deceived their customers and I
hope they are brought to justice and hit hard both in the pocket and if
the evidence supports the facts via the criminal justice system.
The FSA confirmed that the banks' chief executive officers have
personally confirmed that they will have responsibility for oversight
of the compensation package which begs the question as to where were
they when this practice was in full throw?
Are you a SME which has been sold a product which falls under the SRA
factsheet? If so get in touch today.
Michael Coyle is a Solicitor Advocate and heads up the litigation team
at Lawdit. He can be contacted at email@example.com. Lawdit is
a commercial law firm based in Southampton.
About the Author
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are experts in commercial law with a heavy emphasis on Intellectual
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Article Published/Sorted/Amended on Scopulus 2012-08-03 09:04:07 in Legal Articles