HSBC UK Bank plc

Final notice: failures in the treatment of customers in arrears or financial difficulty

The FCA imposed a penalty of GBP 6,280,100 on HSBC UK Bank plc (30% discount from GBP 8,971,600) for failing to show forbearance and due consideration to retail customers in arrears between 1 June 2017 and 31 October 2018, breaching Principles 3 and 6 and consumer credit and mortgage conduct rules. HSBC had offered GBP 233,186,073 in redress to 1,535,136 customers, of which about GBP 185 million had been paid. The conduct was in retail banking and consumer credit, not the private bank.

The Authority hereby imposes on HSBC UK a financial penalty of £6,280,100 pursuant to section 206 of the Act.

Redress programme of GBP 233,186,073 offered to 1,535,136 customers.

PRA final notice: failures in deposit protection identification and notification (Depositor Protection Rules)

The PRA fined HSBC Bank plc and HSBC UK Bank plc GBP 57,417,500 jointly for failing to identify deposits eligible for FSCS protection accurately (HBEU 2015 to 2022, HBUK 2018 to 2021), failing to assign clear ownership of depositor protection processes, and, for HBEU, failing to alert the PRA for about 15 months and giving an incorrect attestation. The firms received a 15% reduction for cooperation including early admission of some breaches and a further 30% for settlement; without reductions the fine would have been GBP 96.5 million. The joint penalty cannot be split between the two entities from the press release.

The PRA has fined HSBC Bank plc (HBEU) and HSBC UK Bank plc (HBUK) (together, the Firms) £57,417,500