In the Media

Mis-selling claim papers sent to FSA

PUBLISHED June 27, 2012

Thursday 28 June 2012 by Eduardo Reyes

Court papers from an ongoing interest rate swap mis-selling claim obtained by the Gazette have been submitted to the Financial Services Authority (FSA) by the MP leading parliamentary scrutiny of the products' sale to UK businesses.

Sara Pearson's claim against Barclays is due before the High Court in October. But the bank's amended defence, filed in April, includes statements that are relevant to the regulator's inquiry into the sale of financial derivatives to small and medium-sized enterprises.

Barclays' defence states: 'It is admitted that the defendant did not seek or obtain any statement of the claimant's assets or liabilities, or her demands and needs, or her attitude to risk and accordingly that the defendant did not make or retain any record of that information.' The bank insists it had no duty to do so, and denies that there had been a breach of its statutory duty.

The results of the FSA's initial review are expected to be published tomorrow.

In a letter this week to FSA chairman Lord Turner, Aberconwy MP Guto Bebb wrote: 'Interestingly… Barclays appear to be admitting some particulars of Pearson's claim in relation to the way products were sold.'

Pearson is represented by Carter-Ruck. Matthew Arnold & Baldwin is acting for Barclays. A spokesman for the bank denied the allegations made in Pearson's claim.