FSA to announce findings of 'swaps' mis-selling inquiry

Britain's scandal-hit banking industry will face fresh scrutiny today when the Financial Services Authority publishes an update into the mis-selling of complex financial products to small businesses.

The FSA is to announce the results of its pilot inquiry into interest-rate swap mis-selling today. Credit: Press Association.

As many as 40,000 so-called interest rate swaps could have been mis-sold to small businesses since the end of 2001 after the Financial Services Authority (FSA) revealed last June it had uncovered "serious failings" in the sale of the products.

The FSA is expected to give its verdict on how banks have been handling complaints and how they must process them going forward.

It is thought the cost of compensating businesses could total as much as £1.5 billion across the sector.

Read: What are interest-rate 'swaps'?

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Banks face mis-selling payouts

Britain's scandal-hit banking industry was facing another hefty compensation bill after a review of complex products sold to small businesses found more than 90% had been mis-sold.