Jump to content

HSBC Closing IOM accounts of non-residents


Barrie Stevens
 Share

Recommended Posts

Can anyone suggest why HSBC on the Island is writing to customers who are no longer Isle of Man residents and telling them that their accounts will be closed quite soon and giving them a deadline of a few weeks I believe by which to make new arrangements?

 

I know someone over here (UK) who received just such a notice yesterday explaining that it was now HSBC policy (On Guernsey in today's Guernsey Press it is described as local branch policy)...to terminate Isle of Man accounts held by those who are no longer residents of the Island. That is what I understand so far.

 

The letter states that it is not the way the account has been run that is the issue but that the account will be closed due to corporate policy and suggests opening a new account in the UK...The letter says something like "As you are no longer an Isle of Man resident" this account will be closed.

 

The account holder who showed me the letter had lived on the Island 28 years and left in 2008 officially terminating their residence status with the Isle of Man Government agencies concerned.

 

HSBC in 2008 said there was no need to close the Island account and open a local UK one...Since then Pensions, savings, on-line transactions, Debit card, ATM etc have all been via the Island based account.

 

The customer today contacted HSBC in the UK via their call centre admin and a new account will be opened soon, with money, Direct Debts, Standing Orders etc either established anew or cancelled as you wish....The current and savings accounts on the Island must be closed and also Direct Debt card/facilities must end and be re-set as a UK account for a UK resident with HSBC if you wish (Or another bank!)

 

The credit cards are OK and can remain.

 

I listened in to the call. HSBC are very helpful and a new account is progressing and the "old" one will not be "embarrassed" in the interim...The agent said that "quite a large number" of such accounts on the Island are to be closed ...and that he, that is the customer and caller in regard to this matter, "was one of those on the list"..

 

I note a lot of change going on due to compliance, various agreements and official spanners in the works so is this all simply due to a policy decision by HSBC or is there some other regulatory reason? I do not follow these things closely but was asked to find out if possible.

 

Are all the other banks doing the same? Is this all just "old news" and thus an expected development?

 

 

Link to comment
Share on other sites

Barrie,

 

I guess this is just to streamline the IOM operation, there's no regulatory requirement for this, but if they only have IOM resident accounts there they can say that they only need a maximum of one compliance officer. As HSBC operates in the UK then it probably makes sense to shift the account there anyway.

 

Bit inconvenient if you don't live in either the IOM or UK though :( .

Link to comment
Share on other sites

Boredom: Go back to school. It is not my account. I have been asked to seek an explanation but it seems that this has been going on for some weeks in Guernsey for one...Someone now tells me that they have been given three days to make new arrangements?....Wonder if a few more bank jobs will be lost?...I suspect that some customers took no action and they have had their accounts closed and been sent a cheque...

Link to comment
Share on other sites

This is nothing new.

 

I left the Island last year to relocate to the UK and this was their policy then, as they only cater for Island residents.

So happy and popular in you new life in the UK yet still find time to regularly post on here, you sad english fucker.

  • Like 1
Link to comment
Share on other sites

https://www.gov.uk/government/publications/automatic-exchange-of-information-agreements-other-uk-agreements/automatic-exchange-of-information-agreements-other-uk-agreements

The Isle of Man entered into an agreement with the UK government to mutually exchange information on bank accounts held in one jurisdiction by residents of the other jurisdiction. Collating and transmitting this information every year would be quite a chore and therefore would be a good reason for HSBC Isle of Man to get rid of accounts held by UK residents.

  • Like 3
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...