Regulation

The UK government has put new rules in place to protect the economy and taxpayers.

This means we have separated our retail banking operations from any wholesale and investment divisions and changed the way we are structured in the UK - creating a new ring-fenced bank, HSBC UK Bank plc. Non-Bank Financial Institutions (NBFIs) remained in HSBC Bank plc and were not transferred into the ring-fenced bank.

All HSBC customers will continue to benefit from the knowledge, experience and financial strength that HSBC has gained through more than 150 years in banking.

If you would like to know any further information, please visit: UK Ring-Fencing.

* Please note that due to legislative requirements, some smaller Non-Bank Financial Institutions may be required to be banked in HSBC UK Bank plc (i.e. within the ring-fenced bank). If you have any queries please speak to a member of the team via the contact us section.”

What are the qualifying criteria?

For HSBC Bank Plc. to provide you with any banking services, you must satisfy certain criteria:

• Qualify as a Relevant Financial Institution (RFI)
• Turnover not less than £6.5m
• Total Assets not less than £3.26m
• No fewer than 50 employees

The above criteria are only applicable to entities not in their first year of trading. HSBC Bank plc reserves the right to exit entities where they no longer meet these criteria after this time.

What is supporting qualifying evidence?

If you meet the above criteria or already maintain a relationship with HSBC Bank Plc you will need to:

• Satisfy our risk-based criteria for customer selection. You will be asked detailed questions about your own and your customers' payments, as well as your wider business activities (please see requirements in the Next Steps section below).
• Be registered with or authorised by the UK Financial Conduct Authority (FCA) for activities that include provision of payment services or be an EEA-passported Payment Service Provider.
• Demonstrate a satisfactory operational and business model, financial status and experience.
• Comply with the appropriate UK payment system(s)’ rules (Bacs, CHAPS, Faster Payments and Image clearing scheme).
• Have a strong Anti-Money Laundering (AML) Policy in place that also includes Anti-Bribery and Corruption, Sanctions (including United Nations, European Union and UK HM Treasury) and Terrorist Financing. We require proof of such policy in order to verify the following:
  • Policy and procedures in place to comply with UK and EU Payment law regulations.
  • Policy and procedures in place to report any suspicious activity to the National Crime Agency.
  • Policy and procedures in place to identify Politically Exposed Persons.
  • Robust processes in place to identify and verify your customers and their underlying transactions.
  • Appropriate screening and monitoring of new and existing staff in line with your policies.
  • Staff and customer AML, Sanctions, Terrorist Financing, suspicious activity reporting and record keeping training in place.
  • Audit trail of how money is received and remitted, to ensure payment transparency.
  • Your procedures with evidence of your compliance with all other regulatory requirements relevant to your business activities e.g. tax, or regulated lending.
  • Records management procedures in place to retain customer information for the appropriate period in accordance with your regulatory permission and relevant data protection law.

What does this mean?

GDPR provides individuals with more transparency regarding their personal data. It strengthens their rights, giving improved access to their data and the right to review and, in certain circumstances, edit or delete the information that organisations store about them.

What does this mean for HSBC?

GDPR won't change the way we use your information, and information about individuals connected to your business.

We'll continue to value the data you share with us, treating it with respect and keeping it secure at all times. Where appropriate, we'll continue to contact you about services that may benefit you, unless you've asked us not to.

So whilst the laws might be changing, our commitment to looking after your data stays the same.