HSBC customers are being offered inadequate compensation following the shutdown of its brokerage business and they should seek advice before signing waivers, the Independent Bankers Union has warned.

It warned that they might be entitled to a higher compensation than the amount being offered but, should they sign a waiver, they would no longer be able to recover the difference.

The union, affiliated to the Union Ħaddiema Magħqudin, said that HSBC Bank was offering customers to offer compensation for what the bank described as “a legacy operational and regulatory failure in the bank’s now closed brokerage business”.

The union strongly suggests that impacted individuals are to act with caution before accepting any money in full and final settlement

“The IBU received complaints from its members who are also customers of HSBC about the fact that they are being offered an inferior settlement amount than their true legal entitlement for compensation.

“The union strongly suggests that impacted individuals are to act with caution before accepting any money in full and final settlement. In addition, the union recommends that these individuals should seek professional advice before signing any waivers in favour of HSBC in return for a compensation which may be far less than what they are entitled to receive at law.

“In its correspondence with stakeholders, HSBC is using statements such as ‘the actions followed were established in discussion with the MFSA’ which the IBU perceives as being highly misleading since they project a false sense of reassurance. Such statements seem to incorrectly imply that the selection of customers eligible for compensation, as well as the basis and amount of such compensation carries the approval of MFSA,” it said, adding that it had contacted the regulator urging it to intervene.

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