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UK banks speed up payouts for swaps mis-selling

Published on Jan 10, 2014 3:30 PM

LONDON (REUTERS) – Britain’s biggest banks have increased the pace of compensation to small firms mis-sold complicated interest-rate hedging products, but have still paid out only 5 per cent of the 3 billion pounds (S$6.3 billion) they have set aside.

The Financial Conduct Authority (FCA) said on Friday that 158.6 million pounds had been paid in compensation by Britain’s biggest four banks – Lloyds, RBS, Barclays and HSBC – by the end of December, compared with 81.2 million at the end of November.

A total of 1,040 offers of compensation had been accepted by customers at the end of last month, up from 547 at the end of November.

“Banks have picked up the pace since November; we asked that they focus their efforts on moving far making far more rapid progress in assessing individual cases and crucially in providing redress,” said the FCA’s director of supervision, Mr Clive Adamson.

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