Four big British banks have agreed to undertake a comprehensive review of their sales of interest rate hedging products (IRHPs) to small businesses, and to provide customer redress, in the wake of widespread suitability concerns.

The UK’s Financial Services Authority (FSA) confirmed Thursday that Barclays, HSBC, Lloyds and RBS will review their individual sales of IRHPs, and will provide redress to customers based on principles outlined in a report published Thursday by the FSA (a process that will be overseen by independent reviewers).

The move to undertake full reviews follows pilot reviews that were launched by the banks after the FSA announced last summer that it had found serious failings in the sale of IRHPs. The pilot was established to allow the FSA to consider the banks’ proposed approaches to reviewing the sales.

The FSA reports that the pilot reviews confirmed its initial findings of mis-selling of IRHPs. The FSA looked at 173 sales to non sophisticated customers and found that over 90% of the sales did not comply with at least one or more regulatory requirements. It says a significant proportion of these cases are likely to result in redress being due to the customer. The reviews are to focus on those firms that were unlikely to understand the risks associated with the products.

“This marks significant progress in our review of these products. We believe that our work will ensure a fair and reasonable outcome for small and unsophisticated businesses,” said Martin Wheatley, CEO designate of the Financial Conduct Authority (FCA). “Where redress is due, businesses will be put back into the position they should have been without the mis-sale. But it is important to remember that this review is firmly focused on the particular circumstances of each sale. These will determine whether there were failings in the sales process and, if so, whether redress is due.”

The FSA has also been reviewing sales of IRHPs by Allied Irish Bank (UK), Bank of Ireland, Clydesdale and Yorkshire banks, Co-Operative Bank, and Santander UK. Its aiming for these banks to launch their reviews by Feb 14.