The Financial Services Authority yesterday confirmed that National Australia Bank may need to pay compensation to business customers misled about interest rate hedging products.NAB is one of six smaller banks to reach agreement with the UK banking regulator over the review of a range of interest rate risk management products that earlier reviews (by the FSA and by the Ombudsman Service) concluded were mis-sold.Most of the issues raised in the earlier reviews centred on the sales practices of larger banks and the number of customers affected at Clydesdale Bank may be small.The bank will provide a formal process for business customers to seek a review of their facilities and to claim compensation if justified.