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The Bank of England has fined HSBC £57.4mn for “serious failings” in safeguarding the deposits of some customers over a period of seven years.
The BoE’s Prudential Regulation Authority said on Tuesday that it was imposing its second-biggest fine after HSBC failed to correctly identify customer deposits eligible for protection under the Financial Services Compensation Scheme between 2015 and 2022.
Under the scheme, banks are required to ensure they have systems and controls in place to help regulators identify those customers who would be eligible for protection in the event of a bank failing.
The regulator said that the bank’s failings had “materially undermined the firm’s readiness for resolution” and that HSBC had “failed to be duly open and co-operative with the PRA in not alerting the PRA over an approximately 15-month period about problems identified in the incorrect marking of accounts as ‘eligible’ for FSCS protection”.
Sam Woods, chief executive of the PRA, said: “The serious failings in this case go to the heart of the PRA’s safety and soundness objective.”
The fine was reduced by 45 per cent because of HSBC’s co-operation in the investigation and its agreement to settle the matter.
In a statement, HSBC said that it was pleased to resolve the matter: “The PRA’s final notice recognises the bank’s co-operation with the investigation, as well as our efforts to fully resolve these issues. We continue to remain focused on serving our customers.”
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