Failings in protecting customer deposits lead to significant fine

  • HSBC fined $73 million by U.K. regulator for deposit protection failings
  • Failings in the protection of customer deposits over several years
  • Fined for not properly implementing Depositor Protection Rules requirements
  • Inaccurate identification of deposits eligible for protection
  • Second highest fine imposed by the PRA
  • Breaches not considered deliberate or reckless
  • Happened between 2015 and 2022 at HSBC Bank, and between 2018 and 2021 at HSBC UK Bank
  • HSBC pleased to have resolved the matter
  • Penalty reduced due to cooperation, early admission, and agreement to resolve the issue

HSBC has been fined $73 million by the U.K. bank regulator, the Prudential Regulation Authority (PRA), for failings in the protection of customer deposits over several years. The PRA found that HSBC Bank and HSBC UK Bank did not properly implement the Depositor Protection Rules requirements and inaccurately identified deposits eligible for protection under the Financial Services Compensation Scheme. The seriousness of the failings resulted in the second highest fine imposed by the PRA. However, the breaches were not considered deliberate or reckless. The incidents occurred between 2015 and 2022 at HSBC Bank and between 2018 and 2021 at HSBC UK Bank. HSBC expressed its satisfaction in resolving the matter and highlighted its cooperation with the investigation and efforts to fully resolve the issues. The penalty was reduced due to HSBC’s cooperation, early admission, and agreement to address the problem.

Public Companies: HSBC (HSBC)
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Factuality Level: 8
Justification: The article provides specific details about the fine imposed on HSBC by the UK bank regulator, the Prudential Regulation Authority (PRA). It mentions the reasons for the fine, the time period during which the failings occurred, and the response from HSBC. The article does not contain any obvious bias or opinion masquerading as fact. However, it lacks additional context or analysis, and there is no mention of any potential impact or consequences of the fine.

Noise Level: 7
Justification: The article provides a brief overview of HSBC being fined by the U.K. bank regulator for failings in the protection of customer deposits. It mentions the amount of the fine, the reasons for the fine, and the timeframe in which the failings occurred. However, it lacks in-depth analysis, evidence, or solutions to address the issue. The article also includes statements from HSBC claiming to have resolved the matter and the PRA acknowledging the bank’s cooperation. Overall, the article provides some relevant information but lacks depth and actionable insights.

Financial Relevance: Yes
Financial Markets Impacted: HSBC Bank and HSBC UK Bank

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses a fine imposed on HSBC by the U.K. bank regulator for failings in the protection of customer deposits. However, there is no mention of an extreme event or its impact rating.

Reported publicly: www.marketwatch.com