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
Call for Hildebrand to become short-term lets to reflect changing tourism environment
A CALL to allow a Pembrokeshire seaside hotel to become short-term holiday let accommodation to ensure its long-term viability in a changing tourism sector has been submitted to the national park.
In an application to Pembrokeshire Coast National Park, Abergavenny-based Kyle Williams, seeks permission for a change of use of The Hildebrand Hotel, 29 Victoria Street, just off Tenby’s Esplanade seafront, from a traditional hotel to a short-term holiday letting operation.
A supporting statement accompanying the application says the scheme seeks to “secure the continued viable use of the property through its operation as professionally managed holiday accommodation, providing high-quality visitor accommodation within the established tourism destination of Tenby”.
It adds: “The Hildebrand Hotel is an established visitor accommodation property located within Tenby, Pembrokeshire, one of Wales’ premier coastal tourism destinations. The property has historically operated as hotel accommodation and occupies a sustainable location within walking distance of local services, beaches, restaurants, public transport facilities and tourism attractions.
“The building is well suited to visitor accommodation use and benefits from existing infrastructure, guest facilities and accommodation layouts that support continued tourism-related occupation.”
It says no significant external alterations are proposed, adding the “character, appearance and scale of the building will remain unchanged”.
“The accommodation will be let on a short-term basis to visitors and tourists, supporting the local visitor economy whilst ensuring the building remains occupied, maintained and economically viable.”
It adds: “The proposed use will ensure the continued occupation and maintenance of the building. The hospitality sector has experienced significant operational challenges in recent years, including staffing pressures, increasing energy costs and changing visitor preferences. The proposed use offers a flexible operational model capable of maintaining the long-term viability of the property.”
It concludes: “The proposal will retain the building within the tourism sector, support the local economy, preserve the ongoing use of an established visitor accommodation property and ensure the long-term viability of the site.
“No significant external alterations are proposed, and the development is not expected to result in unacceptable impacts upon neighbouring amenity, highway safety or the character of the area.”
The application will be considered by Park planners at a later date.
Business
Expansion of facilities at award-winning Cresselly Arms approved
PLANS to expand facilities at a popular beauty spot award-winning Pembrokeshire pub, in part using a former public toilet, have been approved.
In an application to Pembrokeshire Coast National Park, Lloyd James C/O Owen & Owen Ltd for Cresselly Estate, through agent Hayston Developments & Planning Ltd, sought permission to upgrade an existing food outlet with the conversion and extension of a former public toilet block to a bespoke kitchen, store and staff toilet, new covered seating area and external bar container unit and associated works, at The Cresselly Arms, Cresswell Quay.

The Grade-II-listed Cresselly Arms originated as an 18th-century dwelling and was a public house by at least the mid-19th century.
In more recent years, the pub under landlord Steve Adams won the CAMRA (Campaign for Real Ale) pub of the year award for the whole of Wales in 2024, having previously been named the best in Pembrokeshire.
A supporting statement said the former toilet block closed some two years ago and is now in the applicant’s ownership, having previously been leased by the county council; the toilet closing after fears of a leaking ‘sealed’ cesspit.
It says nearby listed building the Cresselly Arms “has been purveying a variety of drinks for over 200 years together with a limited range of snacks,” adding: “Whilst the number of customers will have varied over the years, at times when the local Hunt meets at the Cresselly Arms large crowds and their vehicles congregate in the area.”
It went on to say: “Over recent years the Inn has stationed mobile units associated with the preparation and enjoyment of food within its curtilage and this proposal is to improve the quality of the presentation of food and refreshments, including making use of the redundant toilet block to the north.”
It added: “Whilst the proposal would introduce new uses onto the site it is considered that these activities are ancillary to the operation of the long established Cresselly Arms and for the most part take place within the curtilage of the inn.”
The application was supported by local community council Jeffreyston, but it noted concerns regarding parking arrangements and the potential for increased vehicle movements, with one member for the public raising concerns about “fast food outlets in a historical area of natural beauty”.

An officer report recommending approval said: “Revisions to some detailed elements of the scheme have been received during the course of the application. The amended proposal is considered to represent a sympathetic enhancement of an established hospitality business which supports the visitor economy whilst respecting the historic character and appearance of Cresswell Quay.”
It said the pub had historically seen temporary barbecue and catering facilities occupying the quay area, the proposal seeking to “rationalise and formalise these activities within the established ancillary yard associated with the Cresselly Arms,” adding: “In heritage and placemaking terms this is considered a positive outcome.”
It went on to say, on highways issues, the proposal sought to improve facilities rather “than significantly expand its capacity or introduce a new use,” and was not considered it would “generate a level of traffic that would result in a severe impact on the local highway network or existing parking arrangements.”
The application was conditionally approved by park planners.
Business
Tattoo artist ejects convicted child sex offender from Carmarthen studio
A CARMARTHEN tattoo artist has said she stopped a tattoo session and asked a customer to leave after he allegedly disclosed his previous conviction for child sex offences.
Ffion Emma, who works from Mythical Ink in Queen Street, Carmarthen, posted online that the man had appeared to be “a normal human being” before opening up about his past during the appointment.

She said he told her he had been in prison and admitted he had been found with indecent images of children.
The tattoo artist said she immediately stopped the session and told him to leave the studio.
Convicted in 2019
The man was named online as Gavin Evans, formerly of Glanamman.
Court reports from 2019 show Evans, then a Tesco worker, was jailed after grooming a vulnerable young girl online and admitting child sex offences.
He appeared at Swansea Crown Court on March 29, 2019, where he was sentenced for offences including making indecent images of children.
The case involved a vulnerable young teenager who had been groomed online.
Studio stance
In her post, Ffion said Evans was “not welcome” at the studio and made clear that anyone convicted of similar offences would not be accepted as a customer.
The post attracted a large reaction online, with many people praising her decision to end the appointment.
Some comments went further, calling for violent or humiliating treatment of sex offenders, but The Herald is not repeating those remarks.
Businesses are generally entitled to refuse service, provided the refusal is not based on a protected characteristic under equality law.
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