Steve Brine has given a guarded welcome to news that the Financial Services Authority has confirmed the 'big four' banks will start the full review of their sales of interest rate hedging products to small businesses.
Steve is a member of an All-Party Group examining the issue, and has a number of people who have been very badly affected across his Winchester & Chandler's Ford constituency.
He said: ""I am delighted that the full scale review is finally underway for the four major banks and welcome the main elements of today's announcement. Whilst the confirmation that 90% of pilot cases showed serious regulatory failings is shocking, it does justify the arguments that we have been making as an All Party Group.
"The FSA have confirmed that a significant proportion of these sales are likely to result in redress being due to the customer. In their pilot review the FSA found evidence of a number of poor sales practices across a number of products and it is vital that those businesses who would not have purchased these products are put back into the position they would have been in had they not been mis-sold."
The MP was interviewed at the end of a visit to Sparsholt College by BBC South Today, who covered the story in depth on their evening news programme on Thursday 31st January.
Steve continued: "I am pleased that the FSA have revised the sophisticated customer test, which previously saw many high-capital customers such as farmers and hoteliers being the victims of mis-selling but falling outside the scope of the review. Many businesses where there was overhedging -where the period of the swap was longer than the period of the loan - are likely to be amongst those who will benefit from the scheme.
"It is also important to continue our efforts on the moratorium of swap payments since it is crucial that those businesses who are still suffering financial harm as a result of their mis-sold swaps are offered some immediate relief.
"I look forward to discussing in detail the outcome of the pilot review with the FSA next week by which time the full review will have commenced. I welcome the fact that the FSA has set an ambitious target of 6 months to deal with the majority of cases and fully support the efforts to ensure that the banks right the wrongs of their appalling sales practices without delay."
Pictured; Steve speaks to South Today at Sparsholt College
More information...
FSA Paper detailing the outline of the outcome of the pilot review