HSBC fined £57.4m over depositor protection failures

Second largest fine imposed by PRA

The Prudential Regulation Authority has handed a £57.4m fine to HSBC Bank and HSBC UK Bank over historic depositor protection failings.

Both firms failed to properly implement the Depositor Protection Rules (DPR) requirements, including the failure to accurately identify deposits that were eligible for Financial Services Compensation Scheme (FSCS) protection. According to the PRA, the failings occurred between 2015 and 2022 for HSBC Bank, and between 2018 and 2021 for HSBC UK Bank. The £57.4m penalty is the second largest ever imposed by the regulator, it added. Under the DPR, firms are required to put in place adequate systems, controls and governance to "ensure the integrity of critical information which the FSCS re...