London & Westcountry Estates 'didn't understand RBS hedging product' For reasons that have yet to be established, a "final" draft of the report dated December 6 saw the reference edited to a "lack of financial knowledge." However, following a complaint from Matthew Hockin, finance director of LWE, the original wording was reinstated. In an email to Grant Thornton sent on December 7, Mr Hockin wrote: "It is not acceptable for this to be changed to "Lack of Financial Knowledge," which is most certainly not fair in such a broad basis. As you well know it is our specific lack of knowledge and understanding of complex derivative and hedging products that is the actual problem here and this should be stated clearly as the case. LWE is currently preparing legal action against RBS over the swap sold to it by the bank's investment banking arm. Last week, Michael Hockin, the founder of LWE, described RBS as a "disgrace" as he blamed the bank's actions for causing the collapse of the business he had founded. RBS and Grant Thornton declined to comment. The growing scandal over allegations of interest rate swap mis-selling have seen all the UK's major banks face claims they have sold inappropriate hedging products to small and medium-sized businesses. The Financial Services Authority (FSA) is currently conducting an investigation into the claims following an investigation by The Telegraph. On Tuesday, a spokesman for the FSA said: "We are doing a supervisory review to determine the extent of the issue. We are in touch with the banks and we already have things in from them. We have more to get in and we are working our way through it. Barclays and HSBC are among the banks to have already settled interest rate swap mis-selling claims. Barclays had been due to face a legal case this month in Bristol brought by a property developer over allegations it had mis-sold an interest rate hedge. However, the case was settled last month for an undisclosed amount of money.