Green light for HSBC transfers to FirstRand
FirstRand has received regulatory approval for the transfer of clients, banking assets and liabilities and employees of HSBC’s branch in SA.
In September last year, British multinational bank HSBC became the latest offshore banking giant to decide to exit SA as international players battle to establish a significant presence in a market local lenders dominate, a Business Day report notes.
HSBC last year said it would transfer its clients and banking assets and liabilities to FirstRand and smaller rival Absa. Its SA branch employees would be transferred to FirstRand.
‘The clients of HSBC SA are mainly subsidiaries of multinationals operating in SA and some large domestic corporates, and therefore the transfer will be led and implemented by FirstRand’s corporate and investment (CIB) banking franchise, Rand Merchant Bank,’ FirstRand said yesterday.
This will ensure that the transferred HSBC clients will have continued access to corporate and investment banking services in SA, it said.
HSBC’s multinational clients headquartered outside SA will be able to continue to have connectivity through HSBC’s global digital channels for account visibility and payment initiation for their SA accounts once they have transferred to RMB.
HSBC SA will serve its branch clients until the transfer of the business is completed, FirstRand said.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
