HSBC will pay $12.5 million to settle regulators' charges that its private-banking business based in Switzerland violated US securities laws.

The Securities and Exchange Commission said the private-banking unit failed to register with the SEC before providing brokerage services and investment advice to US clients.

The SEC says HSBC Private Bank began doing so more than 10 years ago and collected fees totalling about $5.7 million.

According to the SEC, HSBC Private Bank decided to exit the US cross-border business in 2010.

HSBC, Europe's largest bank by market value, said that it is pleased to have reached a settlement with the SEC.

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