Foreign Secretary confronts HSBC chief over £1bn Hong Kong pensions scandal

Foreign Secretary Questions HSBC Chairman Over Hong Kong Pension Freeze

David Lammy, the Foreign Secretary, has reportedly questioned the chairman of HSBC regarding the bank’s decision to freeze nearly £1 billion in pension funds belonging to British nationals from Hong Kong, according to sources at The Mail on Sunday.

Government Escalates Pressure on HSBC

An email, obtained by this publication, dated August and sent from a senior official at the Foreign Office’s China department to a British diplomat in Hong Kong, indicates the Foreign Secretary “raised [the blocked savings] with Mark Tucker” during a meeting between the two.

This email confirms the issue has reached the highest levels of government. HSBC is facing increasing pressure to appear before Members of Parliament and account for its refusal to release the funds owed to individuals who left Hong Kong to escape Beijing’s crackdown.

The bank is understood to be withholding the money under instruction from the Chinese government.

The email further revealed that Catherine West, the minister responsible for the Indo-Pacific region, is “keen to address” the matter with the bank. HSBC, while headquartered in the UK, generates the majority of its revenue in Asia.

HSBC’s chief legal officer, Bob Hoyt, subsequently met with Foreign Office representatives in September to explore potential resolutions.

Calls for Government Action Mount

These revelations are expected to intensify pressure on the government to find a solution enabling affected individuals to access their savings. Phil Brickell, a Labour member of the Foreign Affairs Select Committee, has urged ministerial intervention.

“Hard-working individuals in the UK are being unjustly denied access to their own money,” Brickell stated.

The Foreign Office confirmed to The Mail on Sunday that the pensions issue had been discussed with the Hong Kong government but did not provide specific details.

“We continue to raise this matter with both the Hong Kong and Chinese governments. We have urged them to facilitate the prompt release of funds, as is standard practice for other Hong Kong residents relocating overseas permanently, and have emphasized that such discrimination is unacceptable,” a spokesperson stated.

Victims of Pension Freeze Face Financial Uncertainty

HSBC is currently holding £978 million in savings belonging to tens of thousands of Hong Kong citizens residing in the UK after fleeing China’s crackdown on pro-democracy activists. These individuals report that HSBC’s decision to freeze their pensions has created significant financial instability.

The bank maintains it is unable to release the funds due to a 2021 decision by Chinese authorities not to recognize British National (Overseas) passports for identification purposes. This policy effectively prevents numerous savers from accessing their pensions early upon relocating abroad.

Campaign to Reverse Hong Kong Passport Decision Gains Momentum

Campaigners and Members of Parliament are advocating for the bank and the government to push for the reversal of this decision, arguing it lacks legal basis. Lord Patten, the final British governor of Hong Kong before its handover to China in 1997, is also supporting this campaign.

An HSBC spokesperson stated, “Hong Kong law dictates the conditions under which pension benefits can be withdrawn. The stipulations for early withdrawal are a matter of law and are not determined by the trustee company.”