MARKS AND SPENCER FINANCIAL SERVICES PLC

Limits on what they may do

• RFB sub-groups

  TO: HSBC UK Bank Plc (FRN 765112) Marks & Spencer Financial Services Plc (FRN 151427) HSBC Private Bank (UK) Ltd (FRN 124781) HSBC Trust Company (UK) Ltd (FRN 119297) (each a ‘firm’) WRITTEN NOTICE TAKE NOTICE: The Prudential Regulation Authority of 20 Moorgate, London, EC2R 6DA has decided to take the following action. 1. ACTION Following an application received from each firm pursuant to section 55M(5)(a) of FSMA for the imposition of the requirements, the PRA has decided to grant the application. 2. CONSTITUTION OF THE RFB SUB-GROUP The sub-consolidation group comprises the entities within the scope of consolidation referred to in paragraph 3(a) of this notice. 3. REQUIREMENTS UNDER S. 55M FSMA (a) Pursuant to Article 11(6) of the CRR, each firm must comply with Parts Two and Three of CRR, and CRD UK law which implemented Title 7, Chapter 4 of CRD on the basis of the consolidated situation of HSBC UK Bank Plc. (b) Each firm must immediately notify the PRA of: (i) any change proposed by the firm to the composition of the sub-consolidation group; (ii) any sub-consolidation group member carrying on or intending to carry on a new activity or materially changing the nature or extent of an existing activity which, if the entity were a ring-fenced body, would be an excluded activity under section 142D of FSMA and the Excluded Activities Order or would contravene a prohibition under section 142E of FSMA and the Excluded Activities Order; (iii) any failure to meet the requirements; or (iv) any change in circumstances likely to affect the ability of the firm to meet the requirements. (c) Each firm must be capable of demonstrating to the PRA that the requirements are met. 4. INTERPRETATION Interpretative provisions (including definitions in the Glossary) of the PRA Rulebook apply to the requirements. 5. EFFECTIVE DATE This written notice takes effect from 1 January 2024 and ceases to have effect on 1 September 2028. 6. DECISION-MAKER The decision to give this notice was made by Simon Dixon on behalf of the PRA. This application has been granted in consultation with the FCA. This notice will be published on the Financial Services Register ANNEX Definitions Excluded Activities Order: means the Financial Services and Markets Act 2000 (Excluded and Prohibited Activities) Order 2014 firm: means each of HSBC UK Bank Plc, Marks & Spencer Financial Services Plc, HSBC Private Bank (UK) Ltd and HSBC Trust Company (UK) Ltd. requirements: mean the requirements in paragraph 3 of this notice

Past business

The FCA has required this firm to go back over business it already did and put things right where customers lost out. Each entry below is the FCA's own wording, and several may amend one scheme rather than describe separate ones.

• Amendment to a consumer redress exercise

  The Requirements became effective on 13 August 2013. The Requirements shall be supplemented as follows: The definition of 'Scheme of Arrangement' at paragraph 1.28 of the Requirements shall mean the solvent scheme of arrangement under Part 26 of the Companies Act 2006 as sanctioned by the Court on 14 January 2014 (as subsequently modified in accordance with its terms) and as described more particularly in Annex 1 to this Supplemental Requirement. Changes to the Scheme of Arrangement as appended to Part 1 of Annex C to the Requirements are highlighted through underlined or struck through text. All references in the Requirements to ”Scheme Document shall be references to the Scheme of Arrangement described more particularly in Annex 1 hereto. Paragraph 5.1 of Part 3 of Annex C of the Requirements shall be amended so as to read as follows: If a Scheme Creditor disagrees with the amount of compensation payable to him, he may initiate the Dispute Resolution Procedure to refer the dispute to the Scheme Adjudicator, provided he does so within the time limits specified in Clauses 4.5 and 4.8 of the Scheme Document. If a Scheme Creditor disagrees with the rejection of his Claim Form by the Scheme Administrators, and provided that the Claim Form was received on or before 22 July 2016, he may initiate the Dispute Resolution Procedure to refer the dispute to the Scheme Adjudicator, provided he does so within the time limits specified in Clauses 4.7 to 4.9 of the Scheme Document.

• Firm must undertake a consumer redress exercise

  The firm is required to establish and operate a consumer redress scheme following a finding of mis-selling against Card Protection Plan Limited ('CPPL'), in respect of those customers who were mis-sold policies. 'Policies' (or 'policy') means CPPL's Card Protection Product, where the sale (or renewal) was on or after 14 January 2005 and was before the relevant Amendment Date (as defined in the scheme documentation); and/or CPPL's Identity Protection Product, where the sale (or renewal) was on or after 14 January 2005 and the sale was by telephone. The amount of redress may be calculated to off-set any claims made under the policy. This customer redress scheme must be implemented no later than 30 April 2014. Such consumer redress scheme shall be binding on the Financial Ombudsman Service. Further details are available on the FCA website: www.fca.org.uk