Lloyds breaches FCA mis-selling guidance

Lloyds Banking Group has breached Financial Conduct Authority (FCA) guidance on the offer of compensation for interest rate swaps mis-selling.

The bank was forced to withdraw its offer of redress to a business when the FCA found it tried to substitute the original hedging product for an alternative.

This breached FCA guidelines as it exceeded the maximum break cost of 7.5% of the businesses’ borrowings, nearing 39%.

It also switched the benchmark interest rate, in its own favour, to...

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