The Financial regulator has fined HSBC bank £57m for “serious failings” in protecting some depositors over several years, in the first penalty of its kind under British rules designed to protect customers if banks fail.
The Bank of England’s Prudential Regulation Authority (PRA) said that HSBC failed to accurately identify deposits eligible for Britain’s Financial Services Compensation Scheme (FSCS) – which protects customer cash up to £85K
The serious failings in this case go to the heart of the PRA’s safety and soundness objective,” said Sam Woods, deputy governor of the Bank of England and CEO of the PRA.
“It is vital that all banks comply fully with our requirements around preparedness for resolution.”
The fine was reduced from an initial £96.5 million for co-operation with the investigation, early admission of rule breaches and agreeing to resolve the matter,
