19th Jan 2023 11:39
(Alliance News) - The UK's Competition & Markets Authority on Thursday said it is taking action against HSBC Holdings PLC relating to breaches of the retail banking order, which HSBC reported itself.
"HSBC breached article 12 of part 2 of the order by publishing inaccurate information, or not publishing required information, through its open data application programming interfaces on more than 50 occasions. In summary, a number of personal current accounts, business current accounts and small & medium-sized enterprises lending products were affected," the CMA explained.
The CMA added that HSBC has breached article 2 of part 2 of the order before, adding that "this context makes the breaches outlined in this letter especially disappointing".
The CMA said that to prevent a recurrence, HSBC has to "more clearly define responsibility for completion and oversight of the information to be published through open banking, mitigating the risk of actions falling on individuals who then move on/are absent," and "deliver training and guidance notes on the requirements of Part 2 of the order, including through written reminders and enhanced user guides." Further, the bank has to improve control processes to check information before it is published through open banking.
The CME said that it does not consider it appropriate to take further formal enforcement action, clarifying that it will monitor HSBC's future compliance closely.
HSBC shares fell 1.7% to 580.40 pence each on Thursday morning in London.
By Tom Budszus, Alliance News reporter
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