The FSA has agreed to give HSBC more time to handle its backlog of payment protection insurance complaints.
It follows the temporary extension granted to Barclays, Lloyds Banking Group and Royal Bank of Scotland earlier this week.
PPI complaints should normally be handled within eight weeks. The FSA has granted the extension so that banks have time to handle complaints properly.
HSBC has been granted the same temporary arrangements as Barclays, Lloyds and RBS.
The terms have been agreed following a judicial review launched by the British Bankers’ Association in October challenging the legality of the FSA’s package of PPI redress measures.
The case was heard in the High Court in January, with the court ruling in favour of the FSA in April.
Under the temporary arrangements PPI claims still with the firm but put on hold during the judicial review will receive a decision by August.
PPI complaints received after the conclusion of the PPI review but made on or before August 31 will be responded to within 16 weeks and PPI complaints made between September 1 and December 31, 2011 will be responded to within 12 weeks.
The FSA says all complaints will be dealt with on the eight week standard basis from January 1, 2012.
Barclays has agreed to settle all PPI claims relating to all consumers who complained before April 20.