Good conduct is key to winning and retaining our customers’ trust. Through our actions and behaviour, we aim to deliver fair outcomes for our customers and support the orderly and transparent operation of financial markets.
Conduct is a critical component of all of HSBC’s business activities. It is embedded within the Group’s strategy, business models and planning, our culture and behaviours, interaction with customers, products and services, financial markets operations, and governance and oversight processes.
Measuring our impact
Explaining how our conduct affects customers, communities and employees is a key part of the information we publish on our environmental, social and governance (ESG) performance.
We have established a global conduct framework with five pillars and 15 global conduct outcomes describing the behaviours to which we aspire. It increases our understanding of how the decisions we make affect customers and other stakeholders, helping us to strengthen our business.
Each global business and global function and HSBC Operations, Services and Technology must ensure that its procedures are designed to deliver the required global conduct outcomes.
The conduct framework
The global approach for the management of conduct has been approved by HSBC’s Group Risk Management Meeting and the Board.
Conduct is defined as ensuring we deliver fair outcomes for our customers and that we do not disrupt the orderly and transparent operation of financial markets.
Global business lines, global functions and HSBC Operations, Services and Technology are each responsible for conduct within the scope of their activities, and must develop, maintain, and be able to evidence approaches to conduct, tailored to their markets and operations, which deliver the required global conduct outcomes set out within the global approach.
The global conduct outcomes are organised around five pillars which categorise where conduct issues may crystallise. The pillars and global conduct outcomes are outlined in the table below.
|The Pillars||Global Conduct Outcomes|
|Pillar 1: Strategy and Business Models||- Our strategy, business models, and the decisions we make deliver fair treatment of customers and do not disrupt market integrity|
|Pillar 2: Culture and Behaviours||
- Our culture supports our people and empowers them to consistently do the right thing for our customers and markets in which we operate
- Our people are competent and committed to the fair treatment of customers and not disrupting the integrity of markets
- We are open to challenge, we acknowledge when things go wrong, we fix things and we learn from our mistakes
- We reward and incentivise performance, behaviours and attitudes which deliver the fair treatment of customers and uphold market integrity
|Pillar 3: Customer||
- We know our customers and understand their needs – we actively listen to them and ask the right questions
- Our products are designed to meet the different needs of our customers, to be competitive and to be understandable
- Our products and services provide a balanced exchange of value between HSBC and our customers
- Throughout our sales and servicing we are efficient, transparent and customer-focused
- We manage our products and services so that our customers’ experience is in line with the expectations we set
|Pillar 4: Markets||
- We seek to prevent and will proactively identify actions and behaviours that constitute market misconduct, and respond appropriately
- Trades are executed in a timely, clear and controlled manner ensuring that optimal execution is achieved for our customers and that HSBC trades are not manipulative
- We manage conflicts of interest and appropriately handle information to reduce the opportunity for misuse
|Pillar 5: Governance and Oversight||
- Our governance framework provides effective oversight of how we fairly treat customers and uphold market integrity
- We engage with regulatory bodies in a timely, open and transparent manner
The Board maintains oversight of conduct matters through the Group Risk Committee. Further detail on the broad range of activities we undertake to enhance conduct is provided in the Annual Reports and Accounts (PDF 6MB).
HSBC puts great emphasis on values. We believe in being dependable and doing the right thing.
We have an unwavering commitment to operating at high standards. Any lapse in standards of integrity, compliance, customer service or operating efficiency represents a potential reputational risk.
The Board has appointed a number of committees consisting of certain Directors and co-opted non-director members.
Global growth slows further
HSBC economists have cut their 2019 global growth forecast from 2.6 per cent to 2.4 per cent.
Our ESG Update
HSBC’s latest ESG report outlines how the bank is working to meet its wider responsibilities.
Helping rugby’s future stars
More than 100,000 children attended HSBC rugby programmes around the world last year.