HSBC fined $73 million for 'serious failings' in UK deposit protection

Sinead Cruise - Reuters - 30/01
HSBC has been fined 57.4 million pounds ($73 million) 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.
LONDON, Jan 30 (Reuters) - HSBC (HSBA.L), opens new tab has been fined 57.4 million pounds ($73 million) 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 on Tuesday that HSBC failed to accurately identify deposits eligible for Britain's Financial Services Compensation Scheme (FSCS) - which protects customer cash up to 85,000 pounds.
This is the second largest fine ever imposed by the PRA, topped only by an 87 million pound penalty on Credit Suisse in July 2023.
"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...
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