CMA warns HSBC over breaches of retail banking order
The UK Competition and Markets Authority (CMA) has warned banking giant HSBC over breaches of Part 2 of the Retail Banking Market Investigation Order 2017.
CMA warns HSBC over breaches of retail banking order
Part 2 of the order requires the nine largest banks in the UK “to ensure accurate, comprehensive and up to date read-only product and reference information is continuously available through open banking Application Programming Interfaces (APIs)”.
The CMA states in a letter to the bank that HSBC breached Article 12 of Part 2 of the order by publishing inaccurate information or not publishing required information through its open data APIs on more than 50 occasions.
It claims “a number” of personal and business current accounts and SME lending products were affected, as the incorrect information related to fees, charges and rates, and to eligibility criteria and features and benefits of accounts and loans.
“The failures varied in length, with the longest lasting from 2017 to 2022,” the watchdog says.
The CMA’s letter acknowledges that HSBC had “self-reported” the breaches on 13 June 2022 following a review of its compliance, and that the banking giant has taken “proactive steps” to put an end to the breaches and ensure they don’t happen again.
Commenting on the next steps over the matter, the CMA says: “HSBC must ensure that it complies with the Order in full. The CMA has powers to issue directions to businesses that fail to comply with its Orders.
“However, given the action that has been, and is being, taken by HSBC, the CMA does not consider it appropriate to take further formal enforcement action in relation to these breaches at present. The CMA will monitor HSBC’s future compliance closely,” it adds.
