The review will cover sales of Interest Rate Hedging Products (IRHPs) entered into between 1 December 2001 – 29 June 2012. These products include:
Swaps - which enable customers to ‘fix’ their interest rate.
Caps - which place a limit on any interest rate rises. If you entered into a cap, you will not be part of the review unless you lodge a complaint to us about your sale. This must happen during the course of the review so we recommend that you do this as soon as possible.
Collars - which enable customers to limit interest rate fluctuations to within a simple range.
Structured collars - which enable customers to limit interest rate fluctuations to within a specified range, but involves arrangements where, if the reference interest rate falls below the bottom of the range, the interest rate payable by the customer may increase above the bottom of the range.