HSBC Holdings (LON:HSBA) has appointed Clara Furse, a former chief executive of the London Stock Exchange (LON:LSE), and a member of the Bank of England’s (BOE) Financial Policy Committee, to chair its ring-fenced UK retail business. The move comes as UK lenders prepare for the ring-fencing rules which aim to separate retail operations from riskier investment banking to avoid a repeat of the 2008 financial crisis.
HSBC’s share price has fallen deep into the red in today’s session, having lost 1.24 percent to 604.90p as of 14:32 BST. The stock is slightly underperforming the broader London market, with the benchmark FTSE 100 index having lost 0.80 percent to 6,861.46 points. The group’s shares have gained a little over a fifth over the past year, and are up by more than 12 percent in the year-to-date.
Sky News reported this week that HSBC had appointed former London Stock Exchange (LSE) boss Dame Clara Furse as non-executive chairman of its new ring-fenced arm, HSBC UK. The hiring, which still has to be approved by regulators, would see Furse take up the position from 1 April 2017 although HSBC UK will not officially commence operations until 2018.
“The creation of HSBC UK offers a great opportunity to get closer to the businesses and communities we serve and to support their ambitions for growth and prosperity,” she pointed out, as quoted by the newswire.
The BOE meanwhile announced in a statement yesterday that Furce had stepped down from her role as a member of the Financial Policy Committee. Reuters noted in its coverage of the news that she now faces a three-month cooling-off period after leaving the BOE before she can start at HSBC. Her role on the committee involved setting the regulatory framework for British banks.