Onside Issue 2 - Winter 2014 - 8

ONSIDE / BANKING Q & A

Q: And what do you think they SHOULD do,
as opposed to what they probably will do?
A: There is a long list I'm afraid. They should include Fixed
Rate Tailored Business Loans in the compensation scheme
now, they should prevent banks offsetting compensation
payments against their facilities in any situation. The whole
question of a "swap for a swap" as part of the compensation
package and their approach to consequential losses needs
to be addressed and they need to introduce a Financial
Ombudsman for small and medium sized businesses to
appeal to.

Q: Are the banks still selling swaps?
Q: But don't they love bashing banks?
A: They do, but sound bites count for nought when trying
to represent businesses on their individual cases.

Q: What did the Treasury Select Committee
looking at business finance want to know
and what did you tell them?
A: They are interested in the whole area of bank regulation
and support for businesses. The mis-selling of "swaps" is
just one perspective on how banks have viewed and treated
businesses. On the regulation point businesses need an
ombudsman with teeth, at present only micro businesses
(less than ten employees and with sales under €2 million)
can apply to the Financial Ombudsman Service. Apart
from the courts and the banks' own internal complaints
departments there is nowhere for other businesses to go,
which is something banks have used effectively for any
appeals against their decision relating to the mis-selling
of swaps. The Treasury Select Committee has not tackled
the point of Fixed Rate Tailored Business Loans not being
within the scheme, this is a glaring omission and is their
single biggest failing on this issue.

A: They certainly are and the rigour they now apply to
explaining the product is in stark contrast to how they were
selling these products. This as much as anything highlights
how bad the banks' practices relating to swaps were and
how destructive they were for the business community.

Q: What difference has swap settlement made
to the businesses you've helped?
A: The cash compensation has obviously benefited businesses
in many different ways. What is more striking is the sense of
satisfaction the business owners feel at having taken on the
banking goliaths and won. Shaking off the swap and receiving
the compensation is a huge relief and removes years of stress
which can only be a positive thing in terms of the future
development for the businesses and the people involved. We
are actively speaking to many of them through the Seneca
Investment Funds in terms of injecting capital to finance
growth now their confidence in the future has been restored.

Contact - Tim Murphy
tim.murphy@senecapartners.co.uk
01204 322 805

« The government needs to introduce a Financial Ombudsman Service with real teeth
that small and medium sized businesses can take their appeals to. »

8



Table of Contents for the Digital Edition of Onside Issue 2 - Winter 2014

Contents
Onside Issue 2 - Winter 2014 - Cover1
Onside Issue 2 - Winter 2014 - Cover2
Onside Issue 2 - Winter 2014 - Contents
Onside Issue 2 - Winter 2014 - 4
Onside Issue 2 - Winter 2014 - 5
Onside Issue 2 - Winter 2014 - 6
Onside Issue 2 - Winter 2014 - 7
Onside Issue 2 - Winter 2014 - 8
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Onside Issue 2 - Winter 2014 - Cover4
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