Priya Patel
TLDR: The Bank of England has fined HSBC £57 million ($80 million) for failing to properly protect depositors. The bank said this was the first penalty it had issued in relation to deposit protection rules and signalled it expected lenders to prioritise protection of their customers. The fine relates to HSBC’s deterioration of its depositor protection system between April 2014 and January 2016. During this period, the bank failed to properly notify the Prudential Regulation Authority (PRA) of changes to its systems and did not have a satisfactory operational capacity to comply with the PRA’s rules. HSBC will pay the fine in full and has already taken action to improve its systems. The bank also apologised for the shortcomings and committed to learn from the experience.
• The Bank of England has fined HSBC £57m ($80m) for failing to properly protect depositors
• The fine relates to HSBC’s deterioration of its depositor protection system between April 2014 and January 2016.
• HSBC will pay the fine in full and has already taken action to improve its systems.
The Bank of England has fined HSBC £57 million ($80 million) for failing to properly protect depositors. This is the first penalty the Bank of England has issued in relation to deposit protection rules, signalling its expectation that lenders prioritise the protection of their customers. The fine is related to HSBC’s failure to properly notify the Prudential Regulation Authority (PRA) of changes to its systems between April 2014 and January 2016, as well as its lack of operational capacity to comply with PRA rules during that time. HSBC will pay the fine in full and has already implemented measures to improve its deposit protection systems. The bank issued an apology and committed to learning from its mistakes.
