HSBC will shut its US fund administration unit and move operations from New York to Dublin as part of the banks global cost-control program, sources familiar with the situation said.
About 200 employees will be affected by the consolidation of operations out of Manhattan. Dublin is HSBCs key fund administration center, offering the most scale in fund services.
HSBC will continue to invest in hedge fund administration, which has been the focus for the Manhattan office. In addition to Dublin, some clients will also be served out of Luxembourg, depending on the structure of their funds, while others are being advised to seek alternative administrators, said the sources.
The closure of the business, including the redundancies, will be affected over the next six to nine months. HSBC will keep a Manhattan operation for some business development functions and specialist product expertise such as tax advice. However, investor services, including reporting, preparation of financial statements and fund structuring will be consolidated into Dublin.
HSBC unveiled its efficiency program in May last year. In a statement announcing the program, the bank said: The program is about reducing bureaucracy and enhancing organizational effectiveness. A variety of roles will be impacted but we will also continue to hire and invest in growth regions and businesses with the aim of becoming the leading international bank.
The banks efficiency program will see it cutting 30,000 jobs by the end of 2013. Five thousand of those jobs were cut earlier in the year, and more recently several hundred more jobs were cut.
(JDC)