Seneca calls for FCA review into currency product sales

NORTH West claims firm Seneca Banking Consultants is calling for financial regulators to investigate whether businesses have been mis-sold currency hedging products.

The Bolton-based company says it is being contacted by a number of SME businesses which it believes have a strong case for redress against the lenders.

It is acting for more than 20 businesses which have suffered financial losses after being allegedly sold a product too complex for their needs.

Dan Fallows, director of Seneca Banking Consultants – which is already acting for hundreds of businesses on interest rate hedging products  – said: “It is early days but from the clients we have there is definitely evidence and  grounds for mis-selling claims.

“My view is that the FCA (Financial Conduct Authority) should launch a review into the matter like it has with hedging. There are a number of similarities – the products are very complex, risky and the sales process was lax – companies were told they had to take them as a condition of sanction.”
 
Mr Fallows said currency hedging products were typically sold to businesses trading overseas to protect them from any adverse currency fluctuations. He believes the downside risks and cost exposure to the business were not properly explained.

Seneca is a leading player in claiming redress for businesses mis-sold interest rate hedging products. It has currently recovered more than £8m of direct redress for its clients and is also seeking compensation for consequential losses from the banks after direct redress has been paid.