HSBC has decided to reduce its role in Bermuda by transferring some of the bank’s fund administration and custody services from the HSBC Securities Services (HSS) office in Bermuda to other HSS offices in Europe.
HSBC acquired The Bank of Bermuda in 2004, and it became not only the territory’s largest bank but also its largest private employer. However, the London-based bank has cut tens of thousands jobs worldwide over the past few years and will cut more in Bermuda as a result of the downsizing. The company said in a statement that it “will endeavour to redeploy those staff members affected wherever it can.”
HSBC currently employs approximately 700 people in Bermuda. The bank also said that clients should not be affected by the changes, as HSS expects to offer the same services from Europe.
“HSS remains committed to providing fund administration services to the hedge fund industry and to the growth and development of its global custody product in order to best serve the local Bermuda market,” the bank added.