According to the BoE’s statement, it was found that both HSBC Bank and HSBC UK Bank had not adequately implemented deposit protection rules for many years. It was determined that HSBC Bank failed to meet these requirements from 2015 to 2022, while HSBC UK Bank failed from 2018 to 2021.
This led to HSBC being fined £57.4 million for deficiencies in deposit protection, identification, and reporting issues. This penalty marks the second-highest fine ever issued by the Prudential Regulation Authority (PRA), which operates under the umbrella of the BoE.
The BoE’s statement also highlighted that HSBC had not reported the identified issues to the PRA or cooperated for approximately 15 months. This indicates that the bank did not act transparently and did not effectively engage in the regulatory process.