DerivativesA further seven banks have agreed to review the sale of complex financial products to small businesses and compensate customers where evidence of mis-selling is uncovered, Britains financial watchdog said yesterday.

AIB, Bank of Ireland, the Clydesdale and Yorkshire banks, the Co-operative Bank, Northern Bank and Santander UK will review the sale of so-called interest rate swaps to small and medium enterprises, the Financial Services Authority said.

Interest rate swaps are complicated derivatives products that may have been sold as protection against a rise in interest rates without the customer fully grasping the downside risks. The move comes after Barclays, HSBC, Lloyds and Royal Bank of Scotland agreed to compensate customers.