Member Article

HSBC sets aside nearly £250 million for misconduct probe

HSBC has set aside $378 million (£236 million) as it prepares itself to be hit with fines over alleged rigging of currency markets.

It said it has made provision for potential penalties following an investigation by Britain’s Financial Conduct Authority (FCA) in its forex investigation.

HSBC, Royal Bank of Scotland and Barclays have now set aside a combined figure of more than £1.1 billion for potential FCA fines over currency-rigging claims.

US investigators are also predicted to hit HSBC with settlement charges, but it has not chosen to quantify those possible penalties.

HSBC also said it was setting aside around £370 million for potential additional payment protection insurance (PPI) mis-selling in the UK.

HSBC said on Monday it had spent $700 million more this year on compliance and risk than a year ago as the FCA attempts to clamp down on bad banking behaviour.

According to Sky News, a spokesperson for the banks said: “Discussions are ongoing with the FCA regarding a proposed resolution of their foreign exchange investigation with respect to HSBC Bank plc’s systems and controls relating to one part of its spot FX trading business in London.

“Although there can be no certainty that a resolution will be agreed, if one is reached, the resolution is likely to involve the payment of a significant financial penalty.

“We continue to cooperate fully with regulatory and law enforcement authorities in the UK and other jurisdictions.”

This was posted in Bdaily's Members' News section by Clare Burnett .