Guidance

SME banking 2002 behavioural undertakings: Directions to HSBC

Directions issued by the CMA to HSBC Bank plc, to ensure it complies with specific undertakings on banking services for SMEs.

• From: Competition and Markets Authority
• Published: 30 March 2022

Documents

Directions to HSBC UK Bank plc

PDF, 353 KB, 22 pages

HSBC action plan

PDF, 158 KB, 2 pages

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Details

In 2002, HSBC Bank plc, among others, agreed that they would no longer (except for in specific circumstances) make a small and medium-sized enterprise (SME) customer open or maintain a business current account in order to get a business loan. This practice is commonly known as ‘bundling’ and was prevented by the behavioural undertakings (undertakings). Following an investigation, the Competition and Markets Authority (CMA) concluded that HSBC Bank plc has breached the undertakings. The CMA has issued HSBC with written directions designed to improve its compliance with the undertakings. These supersede the previous directions to HSBC Bank plc that the CMA issued in 2014.

The CMA’s report on compliance with the 2002 behavioural undertakings is also available.

Published 30 March 2022