Outgoing HSBC CEO calls for ministers to assist in releasing pension funds of Hong Kong exiles
HSBC Urges Government Intervention to Release Frozen Pension Funds for Hong Kong Expats
HSBC has appealed to the UK government to utilize its influence to facilitate the release of £978 million in pension savings belonging to British nationals who fled Hong Kong to escape Chinese oppression. The funds have been frozen due to Beijing's orders, according to HSBC CEO Ian Stuart.
Stuart, who will soon be taking over as the lender's group customer and culture director, admitted during a Treasury select committee hearing that HSBC would contravene Hong Kong law if it were to release the funds. He emphasized that ministers could potentially help resolve the issue by exerting pressure on Hong Kong and Beijing authorities.
MP Yuan Yang, a member of the Treasury committee, expressed concerns about the financial predicament of exiled Hong Kongers due to the frozen funds. Yang noted the ongoing withholding of payments as unacceptable, especially in light of the difficulties faced by these individuals.
HSBC has maintained that it cannot pay out the funds, which are held in the Mandatory Provident Fund (MPF) scheme, due to the 2021 decision by Chinese officials not to recognize British National (Overseas) passports for identification purposes. This decision prevented tens of thousands of savers from withdrawing their pensions early if they relocated overseas.
Campaigners and MPs, however, argue that the decision has no legal basis and that the bank and government should work together to have it reversed. A HSBC spokesperson responded that the bank had no discretion in following Hong Kong legislation concerning MPF withdrawals.
In a separate matter, HSBC recently made headlines for its policy on remote work. Employees who do not return to the office at least three days a week may face reduced bonuses[1][3].
[1] "HSBC rethinks remote work as staff face bonus cuts if they don't return to offices." (https://www.nytimes.com/2022/03/15/business/dealbook/hsbc-remote-work.html)
[3] "HSBC may cut bonuses of staff who don't work in office at least 3 days a week." (https://www.theguardian.com/business/2022/mar/15/hsbc-staff-face-bonus-cuts-if-they-dont-return-to-office)
In light of the frozen pension funds, HSBC's CEO, Ian Stuart, urged the UK government to use its influence to pressure Hong Kong and Beijing authorities for a resolution. MP Yuan Yang expressed concerns regarding the financial troubles of exiled Hong Kongers due to this predicament. Campaigners and MPs argue that the decision preventing British Nationals (Overseas) from withdrawing their frozen MPF funds has no legal basis, and HSBC should work with the government to have it reversed. Additionally, HSBC made headlines recently for its policy on remote work, as employees who don't return to the office at least three days a week may face reduced bonuses.
