Business
HSBC fined £57m for ‘serious failings’ over customer deposit protection
HSBC has been fined £57m by the Bank of England’s financial stability arm for failing to protect customer deposits in the event of a banking collapse.
It is the second-highest fine imposed by the Bank’s Prudential Regulation Authority (PRA) and reflects the seriousness of the failings, the watchdog said. The highest fine was £87m, imposed on Credit Suisse last July.
HSBC – which shut down 12 of its branches in Wales last year – failed for many years to properly implement the requirements set out in the depositor protection rules, the PRA said. The failings occurred between 2015 and 2022. The fine was imposed on two UK subsidiaries of HSBC Holdings, which are deemed to have the “capacity to cause significant disruption to the UK financial system if they were to fail”.
The bank failed to accurately identify deposits that were eligible for Financial Services Compensation Scheme (FSCS) protection, which insures deposits if a bank collapses.
HSBC lacked “adequate systems and controls, and governance” necessary to enable FSCS to make prompt payments to depositors in the case of a banking collapse, the PRA said. It added that the failings had “materially undermined the firm’s readiness for resolution”.
The PRA said the bank failed to alert the regulator about problems identified in the incorrect marking of accounts as eligible for FSCS protection over 15 months.
HSBC also breached other rules that state that lenders must prepare for resolution with a minimum disruption of critical services in the event of a banking collapse.
Sam Woods, the PRA chief executive and deputy governor for prudential regulation at the Bank of England, said: “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.
“HSBC Bank plc fell far short of its obligations in this area, and failed to disclose its failings to us in a timely manner. These failures led to today’s action, including the significant fine.”
The bank cooperated with the regulator throughout the investigation and agreed to resolve the matter, which meant the fine was reduced; otherwise it would have been £96.5m.
The PRA said HSBC failed to assign a senior manager to the resolution processes required in the event of a banking failure. HSBC Bank plc, the non-ringfenced part, also incorrectly marked 99% of its eligible deposits as “ineligible” for FSCS protection.
HSBC said it was “pleased to have resolved this historic matter, which relates to the bank’s compliance with certain parts of the PRA’s depositor protection rules.
“The PRA’s final notice recognises the bank’s cooperation with the investigation, as well as our efforts to fully resolve these issues. We continue to remain focused on serving our customers.”
Business
Big change expected to be backed for Pembroke Power Station facility
PLANS for a green hydrogen production facility by Pembroke Power Station, which the applicants say “can establish Pembroke at the forefront of south Wales’ low carbon future,” and create new jobs are expected to be backed next week.
An application by Pembroke RWE Generation UK plc for the construction of a green hydrogen production facility with electrolysers, hydrogen gas storage, HV transformer and electrolyser control building, and hydrogen gas pipeline offtake; together with associated infrastructure, including water supply pipeline to the Pembroke Power Station and electrical supply connection to the National Grid Substation on land adjacent to Pembroke Power Station is recommended for conditional approval at the November 5 meeting of the county council’s planning committee.
The electrolyser site was previously occupied by the power station’s sports and social club.
A report for planners states: “A green hydrogen facility is proposed that would comprise the main electrolyser area, a hydrogen gas pipeline corridor, an electrical connection to a high voltage transformer and an area for connections into the Pembroke Power Station and a cable corridor for connection into the National Grid Substation.
“The electrolyser is planned to be powered with ‘low carbon electricity supplied primarily via grid connected renewables’ and will create ‘green hydrogen’ for use in industrial processes. Water for the electrolyser will come from existing power station supplies.
“The pipeline corridor would supply hydrogen gas to the Valero Refinery. The pipeline corridor would follow the route of an existing natural gas pipeline. Most of the pipeline corridor would be underground, passing across farmland and a wooded area. It will emerge above ground within the Valero Refinery. The working width of the construction area for the pipeline is expected to be approximately 30m.
“The applicant states that some of the final design aspects and features of the proposed development within the electrolyser site ‘cannot be confirmed at this design stage as these depend on the appointment of an Engineering, Procurement and Construction (EPC) contractor. This may include the heights of buildings, structures and plant and the arrangement of features defined by zones’, nevertheless the maximum height of the flare stack would be 25m and the electrolyser building and compressor building would be up to 17m in height. All other equipment would be of lower height than the electrolyser building.”
The report also quotes from the applicant: “The proposed development forms part of the Pembroke Net Zero Centre (PNZC) initiative which will see RWE diversify its energy generation portfolio to demonstrate a pathway towards decarbonisation.
“RWE’s vision for the PNZC has a critical role to play in Wales’ and the UK’s pathway to Net Zero. By decarbonising its current operations at the power station, while investing in new innovative technologies at the development site, RWE can establish Pembroke at the forefront of South Wales’ low carbon future. The proposals for RWE Pembroke Green Hydrogen form part of this ambition.
“By bringing together technologies such as hydrogen production, carbon capture and storage, battery storage and floating offshore wind to the Pembroke area, RWE can help to decarbonise the energy sector in Wales for generations to come. RWE’s ambitions will build on Pembrokeshire’s local energy heritage, safeguarding existing jobs at the development site, while delivering a significant local economic investment and creating new jobs throughout construction and operation.”
The facility is expected to take 24 months to build, subject to approval, an earlier consultation on the scheme said, and could be built by early 2027.
Business
Saundersfoot 72-home development work set to begin
PLANS by one of the UK’s largest housebuilders to build 72 homes, 25 of them affordable, on the outskirts of a Pembrokeshire seaside village have been given the final sign-off, with works due to start in the spring.
Back in 2022, Persimmon Homes applied to Pembrokeshire Coast National Park for the scheme on a 2.26 hectare area of land adjoining the northernmost houses of a long-established Sandyhill Park residential estate, Saundersfoot.
The application, including 47 open market dwellings, proposed a variety of detached, semi-detached, terraced and apartment properties to create an “attractive and integrated extension to Saundersfoot”.
The application was given delegated approval when it came before the national park’s July development management committee, with conditions including the completion of a Section 106 legal agreement relating to the affordable housing.
The affordable housing units will be split into four low-cost ownership units and 21 socially rented units, the report for national park planners said; the 35 per cent affordable percentage taking precedent over an affordable housing policy requirement of 50 per cent as it is designated as an allocated site.
As well as the affordable housing element and an open space provision, the scheme included a financial contribution to cover the contribution towards Active Travel Routes within the local area (Saundersfoot Harbour to New Hedges).
After that approval, Persimmon Homes West Wales and Pembrokeshire Coast National Park have now signed the S106 agreement and Persimmon is planning to begin groundworks next Spring, with sales launching soon after ahead of the summer season.
Welcoming the agreement, Persimmon Homes West Wales’ Managing Director, Stuart Phillips, said: “We’re pleased to have finalised the S106 agreement that will allow us to deliver 72 new, high-quality homes for local people in Saundersfoot.
“The development will provide a wide range of zero-carbon ready homes that will be of particular help to young families and first-time buyers, who otherwise might struggle to get onto the housing ladder in Pembrokeshire.
“Throughout the planning process, we have worked closely with officers and stakeholders to ensure that our homes are in keeping with – and enhance – the local area, and I’m thankful to officers and the project team for their collaborative efforts throughout.
“The scheme will deliver substantial community benefits, including new facilities, enhanced green spaces, and significant investment in public infrastructure, as well as the transfer of 25 properties to a local housing association.
“Persimmon has a proud record of delivery in Pembrokeshire, and we are excited about this latest development as we continue to build the best-value homes in sustainable and inclusive communities for local people.”
Local community council Saundersfoot had objected to the scheme on a number of grounds, also asking for a caveat that no property is bought for second-home holiday use.
Business
West Wales man raising funds for craft cider venture
A PENYBRYN resident is appealing for community support to launch a small-scale craft cider business in West Wales. Olly Craigan, the organiser of the GoFundMe campaign titled “Craigans Cider,” has already raised £545 towards his goal of £12,000. The funds will go towards purchasing essential equipment to establish a permanent apple press and cider workshop.
Since 2014, Craigan has honed his cider-making skills under the mentorship of experienced cider maker John Whitfield. Now living on a community organic farm in Pembrokeshire, Craigan is seeking to create a dedicated space for producing his craft cider.
The funds raised will help purchase an apple press (£4,500), scratter apple mill (£1,500), filtration and pumping systems (£950), stainless steel tanks (£2,500), and bottling equipment (£1,000). Any donations beyond the target will support operational costs and community cider-making workshops.
Craigan plans to thank supporters by inviting them to a grafting day on the farm, where attendees can sample cider and take home an apple tree.
Further information and donations can be made on the GoFundMe page here.
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