External Policies and Disclosures

Back to Markets in Financial Instruments Directive II (MiFID II)

HSBC has updated a number of external policies and disclosures to reflect the changes under MIFID II.

The Terms of Business and consent forms below are legal agreements between HSBC and the signatory. Please review the relevant documents carefully and return them to the appropriate contact where requested to do so. If you are unsure of which document is relevant to you, please speak to your HSBC Global Markets contact.

Documents for clients of HSBC Bank plc Global Banking and Markets

HBEU Professional and Eligible Counterparties Terms of Business (361KB, PDF)

Retail Terms of Business (339KB, PDF)

MiFID II Notifications relating to Global Banking (105KB, PDF)

Unregulated FX Services Agreement (305KB, PDF)

Documents for clients of HSBC UK Bank plc Markets

HSBC UK Professional and Eligible Counterparties Terms of Business (208KB, PDF)

HSBC UK Retail Client Terms of Business (364KB, PDF)

HSBC UK Unregulated FX Services Agreement (652KB, PDF)

Indirect clearing

Risk warnings disclosure

Inducements disclosure

Under MiFID II, HSBC is required to disclose any fees, commissions or non-monetary benefits (known as inducements) it may pay or receive to and from an affiliate or other third party, and how it will disclose these inducements. You will be provided with separate disclosure of the essential arrangements relating to such fees, commissions or non-monetary benefits where HSBC is required to do so.

Further information about HSBC’s general approach to these arrangements will be available from 3 January 2018.

Best execution

Under MiFID II, HSBC is required to take all sufficient steps to obtain the best possible result for its clients when executing orders on their behalf.

The Client Disclosure Statement and the Summary Disclosure Statement for Retail Client Orders for HSBC Bank plc acting through its Global Markets business can be found here.

MiFID II Best Execution Policies and Disclosures can be found on the Financial Regulation Risk Disclosures page.

Conflicts disclosure

Situations can arise where the interests of HSBC, or those of its staff, conflict with your interests or where your interests compete with those of other clients of HSBC. These conflicts are managed in accordance with the conflicts of interest policy of HSBC.

View a copy of the HSBC Bank plc Conflicts of Interest Policy Summary (200KB, PDF).

View a copy of the HSBC UK Bank plc Conflicts of Interest Policy Summary (154KB, PDF).

Complaints handling

At HSBC, we are committed to providing the best customer experience. We encourage you to let us know, as soon as possible, wherever our products or services do not meet your expectations so we may promptly address your concerns.

In the event that you have a complaint about the quality of the products or services which HSBC supplies, or if you would like to receive further information about HSBC's complaints handling processes, please speak to your usual HSBC representative or click here for more information for each of our major sites.

Terms of dealing

Cleared Derivatives Disclosure

This disclosure impacts on any clients with European ISDA/FIA Cleared Derivatives Execution Agreements which pre date the 3rd of January 2018 (the “Agreement”). This disclosure is to inform you of certain regulatory requirements under RTS 26 of MiFIR (which came into effect from 3 January 2018) (the “RTS 26 Requirements”), as detailed in the attached explanatory memorandum as published by ISDA/FIA (the “Explanatory Memorandum”). The changes are in respect of the timeframes that are applicable to derivatives transactions concluded between us which, notwithstanding the existing terms of the Agreement, both parties will be required to comply with. To the extent there is any inconsistency between the RTS 26 Requirements set out in the Explanatory Memorandum and the relevant provisions of the Agreement, the RTS 26 Requirements shall prevail in respect of both parties.

View a copy of the ISDA/FIA guidance (425KB, PDF)

Allocation Policy

When HSBC is appointed by an Issuer to act on a securities offering, HSBC is likely to be involved in the allocation of the securities to interested investors. This process, by its very nature, creates a number of potential conflicts for HSBC which need to be managed.

In order to ensure that conflicts of interest are managed fairly in relation to the allocation of such securities, HSBC is required to establish and follow appropriate procedures and controls.

View a copy of the HSBC Bank plc Allocation Policy (475KB, PDF)

View a copy of the HSBC Continental Europe Allocation Policy (307KB, PDF)

Costs and Charges Ex-Ante Disclosure

Under MiFID II, HSBC is required to inform its clients of the costs and charges for the services offered and products traded on an ex-ante (i.e. pre-trade) basis.

Here, you can view a copy of the HSBC Bank plc Global Markets MiFID II Ex-ante Costs and Charges Disclosures (551KB, PDF).

Here, you can view a copy of the HSBC UK Bank plc MiFID II Costs and Charges Disclosure (326KB, PDF).

Should you require additional information in relation to a particular transaction or service, please contact your HSBC representative.

FX Swaps Disclosure

HSBC is aware of the clarification provided by ESMA on 26 September 2018 regarding reporting obligations under MiFID II (RTS22 and RTS23 Reporting) and EMIR (Trade Reporting) and has considered the implications of this guidance. This notice sets out how we treat such forwards for purposes of reporting required by various regulations.

HSBC offers clients the ability to simultaneously trade two independent FX Forwards as a single package; we offer this for purposes of pricing and booking convenience.
HSBC does not provide liquidity in Single FX Swap instruments (single instruments executed as FX swap points with one ISIN), unless on a pre-agreed basis.

Going forwards HSBC will continue to support trading of two FX Forwards as a strategy of two independent trades, legally confirmed independently with a separate confirmation for each FX Forward leg and represented for MiFID and EMIR reporting purposes with two ISINs and two Unique Trade Identifiers. HSBC will include a package identifier on each leg and where the strategy includes FX Spot legs these will be excluded for the purposes of Trade and Transaction Reporting, in accordance with regulatory guidance. This includes, but is not limited to, where HSBC trades with you as a Systematic Internaliser. HSBC believes this is the best approach to achieve global consistency with other major reporting regulations and ensures clarity for counterparties.

Legal Notification