Treasury Committee publishes correspondence with FSA and FOS on mis-selling

23 May 2012

The Treasury Select Committee published several pieces of correspondence on mis-selling between the Chairman of the Committee, Andrew Tyrie MP, the Chair of the Financial Services Authority, Lord Turner, and the Chairman of the Board of the Financial Ombudsman Service, Sir Nicholas Montagu.

Mr Tyrie wrote to Lord Turner and Sir Nicholas Montagu on 19 March 2012 expressing concern about recent reports from a number of small businesses over the way they have been sold complex interest rate derivative products by major banks.

“This alleged mis-selling has been of concern to the Committee for some time. Products such as these are unlikely to be appropriate for the retail market. I agree that  a ‘compulsory joint product approach’, whereby firms were allegedly required to purchase complex products in order to obtain other bank services, is wholly unacceptable. It is now up to the FSA to get to the truth. We will do what we can to ensure that they do.”

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