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
Port welcomes first vessel to new workboat pontoons
PEMBROKE PORT, which is owned and operated by the Port of Milford Haven, has welcomed the first customer to its new workboat pontoons. Installed as part of the Pembroke Dock Marine project to modernise the Port’s infrastructure, the pontoons are available for use by a range of vessels including workboats, barges and other small vessels.
CRC Sentinel, a dive support vessel owned by Commercial Rib Charter which is undertaking work on the Milford Haven Waterway, was the first to use the new pontoons.
Sharon Adams, Commercial Manager for Pembroke Port commented: “It’s great to see these new assets being utilised. Pembroke Port is perfectly positioned within the Port of Milford Haven to act as a hub for operations associated with marine activity taking place within the Port and the Celtic Sea. The pontoons are available for short and long term berthing and have secure access, as well as electricity and water hook ups.
The workboat pontoons compliment the other infrastructure upgrades we made as part of the Pembroke Dock Marine project including new laydown space and an expanded slipway.
We look forward to working with our existing customers, and welcoming new ones, to use the new facilities at Pembroke Port.”
The new infrastructure at Pembroke Port forms part of the Pembroke Dock Marine project to create a world-class energy and engineering centre of excellence and act as a focal point for capturing the economic value from wind, wave, and tidal renewable energy projects.
Alongside the Port’s own investment, Pembroke Dock Marine – a Swansea Bay City Deal project – is part funded by the UK Government and the European Regional Development Fund through the Welsh Government as well as other private sector partners.
During construction, the project supported over 50 jobs including 6 apprenticeships. Contractors BAM, Walters Group and R&M Williams undertook community activity during the project, with the local community benefiting from over £11m local spend.
For further details on the facilities at Pembroke Port, and how the Pembroke Dock Marine investments have readied Pembroke Port for future energy, please visit www.pembrokeport.com.
Business
Last Call for Entries: Carmarthenshire Business Awards
BUSINESSES throughout Carmarthenshire are urged to submit their nominations for the prestigious Carmarthenshire Business Awards as the deadline of 17th May 2024 rapidly approaches.
Organised by Grapevine Event Management, these awards are set to recognise and celebrate the outstanding contributions and achievements of local enterprises across a variety of sectors. With the nomination process ending in less than two weeks, businesses and individuals from across the county are invited to take advantage of the opportunity for recognition by entering one of the 15 award categories.
The winners will be unveiled during a glamorous black-tie event at Parc y Scarlets on 12th July, attended by the crème de la crème of Carmarthenshire’s business community.
Liz Brookes, the founder of the awards and director at Grapevine Event Management, expressed her enthusiasm about the high quality of entries received so far. “We are thrilled with the response and the calibre of organisations that have entered. This is the final call for entries; it’s time to ensure your business and its contributions are recognised,” she stated.
Rupert Moon, chair of the judges, highlighted the significance of the awards in promoting local businesses. “Carmarthenshire boasts a range of fantastic businesses. These awards are not just a celebration but a platform to highlight significant achievements in innovation, sustainability, growth, and export success among others,” Moon commented.
Support for the event is strong, with notable local companies such as Castell Howell Ltd leading as headline sponsors. “Supporting local business is essential for Carmarthenshire’s prosperity. These awards are a fantastic opportunity for businesses to gain the recognition they deserve,” said Martin Jones, Director of Castell Howell.
Additional sponsors include Swansea Building Society, Dunbia, Azets, JCP Solicitors, JG HR Solutions Ltd, Business News Wales, and Stills, all contributing to the event’s success.
For more information on how to enter the Carmarthenshire Business Awards, or to register before the 17th May deadline, please visit https://carmsbusinessawards.com/.
Business
Lidl will be first supermarket to sell milk from Pembrokeshire Creamery
LIDL has announced that it will soon become the first UK retailer to sell milk exclusively produced and bottled in Wales, thanks to a partnership with Pembrokeshire Creamery.
Starting from June 1, Lidl customers in Wales will be able to purchase Welsh own-label milk products, with plans to extend this to include cream shortly thereafter.
Previously, milk produced in Wales was transported to England for bottling before being sold in Welsh stores. However, with a significant £20m investment supported by the Welsh government, Pembrokeshire Creamery has now established the only bottling facility in the country certified to supply supermarkets. This development not only reduces transportation distances, thus cutting down on food miles, but also generates 80 new jobs in the local community.
The initiative is part of Lidl’s broader strategy to support Welsh agriculture and provide consumers with locally sourced products. Their range already includes Welsh bread, butter, yoghurt, eggs, lamb, and beef. Richard Bourns, Lidl GB’s Chief Commercial Officer, emphasised the retailer’s dedication to local produce: “Our partnership with Pembrokeshire Creamery is testament to our commitment to offer Welsh shoppers the very best in homegrown food and drink.”
Mark McQuade, Managing Director of Pembrokeshire Creamery, highlighted the efficiency of the new operation. “The partnership will deliver products from farm to shelf in a more efficient way, removing the need for Welsh milk to be sent to England for bottling, before coming back to Wales,” he said.
This news coincides with Lidl’s announcement of a £500m investment in the British pork industry, aimed at supporting continued production amidst recent challenges such as rising costs, a Chinese import ban on EU pork, and butcher shortages, which have significantly impacted the sector.
Lidl’s initiatives are set to bolster not only the local Welsh economy but also the broader agricultural sector across the UK.
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