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Swaps review

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Swaps review

Swaps review

Review of past sales of interest rate hedging products

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Barclays has now commenced the main review in accordance with the updated FCA principles (PDF 500KB, new window).

On 29th June 2012, Barclays agreed with the Financial Conduct Authority (FCA)1 to carry out a review of its past sales of interest rate hedging products (IRHPs) to those small businesses which are classified as “non-sophisticated” by the FCA.

The full FCA announcement together with subsequent updates can be read at:

Interest rate hedging products reviewInterest rate hedging products review (new window)

The purpose of this Guide is to provide a step-by-step explanation of the review process and to set out what it will mean for our customers.

Overview

Barclays is committed to achieving a fair and reasonable outcome for all of our customers. We will do this by undertaking a comprehensive and detailed review of all sales of IRHPs which are subject to the review.

We will prioritise customers in financial difficulty
We have agreed with the FCA that we will prioritise the review of sales of IRHPs to customers in financial difficulty. Also, other than in exceptional circumstances, we will not foreclose on or adversely vary existing lending facilities without giving prior notice to the customer and obtaining their consent before we do so.

Ensuring a fair and impartial review - the role of the Independent Reviewer

  • KPMG LLP and Deloitte LLP have been appointed as Independent Reviewers.
  • The Independent Reviewer will be providing independent oversight to each review, in accordance with the methodology agreed between Barclays and the FCA.
  • In addition they will review any redress offer to confirm that it is appropriate in relation to the agreed methodology.
  • In the event that neither KPMG nor Deloitte are able to act, Barclays will appoint an additional Independent Reviewer.

The Independent Reviewer will oversee the assessment of customer sophistication
Barclays will assess whether a customer was sophisticated or non-sophisticated at the time the IRHP was purchased according to the review's criteria. This assessment process will be overseen by the Independent Reviewer. Where the Independent Reviewer agrees that a customer is sophisticated, that customer will be outside the scope of the review. Barclays will confirm this to all such customers in writing, explaining the basis for reaching that conclusion.

1. As you may be aware, on 1 April 2013 the Financial Services Authority (FSA) was replaced by two new regulatory bodies, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), and the role performed by the FSA in relation to the review of past sales of IRHPs has been assumed by the FCA.

  • Review scope

    Explanation of the products and customers in scope of the review.

  • Review process

    The review process for confirmed non-sophisticated customers, explained in our step-by-step guide.

  • Frequently asked questions

    Find answers to frequently asked questions about the interest rate hedging products (IRHPs) review.

  • Group regulators

    As you may be aware on 1, April 2013 the Financial Services Authority (FSA) was replaced by two new regulatory bodies.

  • Helpline

    Advice about how you can find help from Barclays and the FCA with the IRHP review.

  • Customer action

    What do you need to do to commence the review?

  • Claims management companies

    The FCA has said claims management companies are not required.

  • Pilot programme

    Before the main review takes place, we will conduct a pilot programme with selected customers to test review methodology.

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