HSBC fined $73m over depositor protection failures

HSBC has been fined 57.4 million British pounds (72.8 million U.S. dollars) for "serious failings" in depositor protection over several years, The Bank of England's Prudential Regulation Authority (PRA) said on Tuesday, reported Xinhua.

HSBC, the largest Europe-based bank by total assets, failed to "accurately identify deposits that were eligible for Financial Services Compensation Scheme," which protects customers and pays compensation up to 85,000 pounds per person when authorized financial services firms fail, the PRA said in a statement.

This was the second highest fine ever imposed by the PRA, only after the 87-million-pound fine imposed on Credit Suisse in July 2023.

"The serious failings in this case go to the heart of the PRA's safety and soundness objective. It is vital that all banks comply fully with our requirements around preparedness for resolution," Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the PRA, said in a statement.

HSBC "fell far short of its obligations in this area, and failed to disclose its failings to us in a timely manner," Woods added.