HSBC set to stay in UK after regulatory U-turns

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HSBC is likely to keep its headquarters in London after it won a number of concessions on tougher banking regulation.

The Sunday Times reports that following cuts to the banking levy and a relaxation of ring-fencing rules that require banks to split their retail and investment arms, HSBC is leaning towards keeping its base in the UK.

Last week also saw changes to the senior managers regime, with the Government dropping requirements forcing executives to prove they had taken all reasonable steps to prevent poor conduct.

One source told the newspaper chief executive Stuart Gulliver has secured “pretty much everything he wanted out of the Government”, while a top 10 shareholder said it was “more than likely the bank will remain in the UK when the domicile review is completed”.

HSBC has said the changes to senior managers rules may delay its final decision about its headquarters until the new year, rather than December as originally planned.

The bank says no decision about whether to keep its headquarters in the UK has been made.