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"INTEREST RATE HEDGING PRODUCTS" [2019] ELECD 660; in Kirk, Jonathan; Samuels, Thomas; Finch, Lee (eds), "Mis-Selling Financial Services" (Edward Elgar Publishing, 2019) 227

Book Title: Mis-Selling Financial Services

Editor(s): Kirk, Jonathan; Samuels, Thomas; Finch, Lee

Publisher: Edward Elgar Publishing

Section: Chapter 6

Section Title: INTEREST RATE HEDGING PRODUCTS

Number of pages: 48

Abstract/Description:

This chapter provides an introduction to interest rate hedging product (‘IRHP’) mis-selling. Over the last few years there have been numerous high-profile cases involving alleged IRHP mis-selling which raise various complicated issues. This chapter aims to cut through the difficulty and addresses the topic in a methodical way first explaining what IRHPs are and distinguishing the different types before explaining the duties that can apply when selling IRHPs and the ways in which those duties can be breached. Particular emphasis is placed on the allegations commonly made in IRHP mis-selling claims and issues that regularly arise, including the effect and fairness of basis clauses, the scope of the duty, limitation and the need for expert evidence. Finally, the IRHP redress scheme agreed between the FCA and a number of banks is discussed.