ASIC: A $35M penalty sought from HSBC

The Australian Securities and Investments Commission (ASIC) has announced its intention to seek a $35 million penalty from HSBC Australia for alleged breaches of consumer protection laws. The proposed penalty stems from an investigation into the bank’s billing practices related to add-on financial products, including credit-monitoring services. ASIC alleges that HSBC failed to ensure that customers were adequately informed about the terms and costs of these products, potentially leading to unfair and deceptive practices.

The regulator has also mandated that HSBC identify and provide restitution to affected customers. The proposed action mirrors similar enforcement measures taken by U.S. regulators, including the Office of the Comptroller of the Currency (OCC), which imposed a $35 million civil penalty on HSBC Bank USA for comparable violations.

ASIC’s action underscores a broader regulatory focus on transparency and accountability in the financial services sector. The outcome of the proposed penalty will depend on formal proceedings, during which HSBC may respond to the allegations.