In May 2024, the Financial Conduct Authority (FCA) imposed a £6.28 million fine on HSBC UK Bank, HSBC Bank, and Marks & Spencer Financial Services for failing to treat customers fairly who were in arrears or experiencing financial difficulties. Between June 2017 and October 2018, HSBC breached FCA principles by not conducting proper affordability assessments and failing to apply appropriate forbearance measures. These failings affected over 1.5 million customers, with HSBC paying £185 million in redress.
Key Issues:
- Lack of proper affordability assessments
- Failure to apply appropriate forbearance solutions
- Automated processes that disproportionately impacted customers in low arrears
Remediation:
HSBC acknowledged these failings, initiating a comprehensive remediation program, investing £94 million to address the issues and compensating affected customers. The FCA recognized HSBC’s cooperation and self-identification of the problems, which led to a 30% penalty reduction.
For further details, you can access the FCA’s full notice.
About Michael Rasmussen
Michael Rasmussen is the founder of United Atlantic Legal Services. He is a licensed attorney in Florida and registered solicitor in the United Kingdom. Michael has acted as General Counsel and Chief Compliance Officer to several investment advisers, including private fund managers, responsible for the management of billions of dollars in client assets.
Michael is also the founder of FinProLaw, an online learning platform where Michael has created courses designed for investment adviser compliance professionals. These courses include:
- Investment Adviser Compliance Essential for Chief Compliance Officers
- Foundations of Investment Adviser Compliance
- What is a “Security”?
- Investment Adviser Marketing Rule
- Regulation A – Exemption from Registration
- Regulation Crowdfunding – Exemption from Registration
- Regulation D – Exemption from Registration
Michael can also be found on LinkedIn.
Investment adviser firms who are also clients of United Atlantic Legal Services can receive many of these courses at a significantly reduced fee or, in some cases, at no expense. Contact us today or visit the FinProLaw to learn more.