Parliamentary group to challenge FCA on IRHP redress scope

In March 2022, the All Party Parliamentary Group on Fair Business Banking (APPG) filed judicial review proceedings challenging the FCA’s decision not to act on the Swift report findings that the interest rate hedging products (IRHP) redress scheme adopted flawed eligibility criteria, meaning that a third of customers who were deemed to be ‘sophisticated’ were excluded from the scheme.

In June 2023, the High Court granted permission to bring the judicial review but the APPG needs to raise funds in order to pursue the case. This is despite its legal team having committed to offer at least 75% of their time on a contingent basis (limited to any costs that may be recovered from the FCA). The APPG has raised c.£100,000 to date and is seeking a further £100,000 to cover, amongst other things, the APPG’s potential exposure to adverse costs.

Lucy Hadrill