HSBC Names Hinshelwood Deputy CEO of U.K. and European Unitby
Hinshelwood to direct split of U.K. consumer, investment banks
Will be deputy to Antonio Simoes, CEO of HSBC Bank Plc
HSBC Holdings Plc named Nigel Hinshelwood deputy chief executive officer of its U.K. and European unit, where he will oversee the separation of the British consumer and investment banking operations, known as ring-fencing.
Hinshelwood will also be head of the U.K. region and act as deputy for Antonio Simoes, CEO of HSBC Bank Plc, according to an internal memo from Simoes and group chief operating officer Andy Maguire, seen by Bloomberg and confirmed by a bank spokeswoman. He starts on on Feb. 22, subject to regulatory approval.
The U.K.’s largest banks are making plans to meet the ring-fence rules, which come into force in 2019. The Bank of England requires lenders with more than 25 billion pounds ($36 billion) of deposits to erect firebreaks between their retail and commercial operations and investment banking. The regulation seeks to ensure core services, such as those handling deposits and payments, are protected if trading operations incur losses and have to be shut down.
“Successful delivery of the ring-fenced bank is one of the 10 strategic actions that we undertook to investors” in HSBC’s June strategy update, Simoes said in the memo. “Nigel’s role is therefore to deliver one of the group’s highest priorities.”
HSBC’s ring-fenced bank will be known as “HSBC U.K.” and the lender is moving the head office of the operation to Birmingham, transferring 1,000 people from London. Shares of HSBC Holdings fell 1.2 percent to 502.1 pence at 3:03 p.m. in London.
Hinshelwood will be responsible for retail banking and wealth management, commercial banking and private banking, as well as global functions and operations for the HSBC U.K. business, according to the memo. He joined the bank in India in 2005 and is currently global head of operations. He is also group general manager and a non-executive director of the Saudi British Bank, and is a non-executive director of Marks & Spencer Bank.