- HSBC was fined £57.4 million by the UK’s Prudential Regulation Authority (PRA).
- Fine issued to HSBC’s European holding company (HBEU) and UK subsidiary (HBUK) for historic depositor protection failures.
- Depositor Protection Rules by the Bank of England were violated, leading to improper implementation over many years.
- PRA found HSBC failed to provide information for Financial Services Compensation Scheme (FSCS) reimbursement and misidentified eligible deposits.
- Failures occurred between 2015-2022 for HBEU and 2018-2021 for HBUK.
- 99% of beneficiary deposits were incorrectly marked as ineligible for FSCS protection.
- HBEU failed to promptly inform PRA about problems, undermining the firm’s readiness for resolution.
- HSBC’s cooperation in the investigation led to a reduced fine of £57.4 million from the original £96.5 million.
- Deputy governor for prudential regulation, Sam Woods, emphasizes the importance of banks complying with resolution requirements.
- HSBC is “pleased to have resolved” the matter, citing cooperation and efforts to address issues.
- Bank of England and PRA introduced revised policies for faster investigations, establishing incentives for early cooperation and admissions.
