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HSBC fined £3.2 million by regulator

HSBC has been fined a total of £3.2 million after the FSA (Financial Services Authority) found the company in breach of data protection and security issues. The fine relates to 3 particular units which are HSBC life, HSBC actuaries and HSBC insurance brokers. The issue seems to have come to a head with the loss of a confidential CD which contained 180,000 insurance policyholder details, after being sent via the unrecorded delivery postal service.

This is the largest fine that the FSA has issued in the UK so far for breach of data security issues. During a routine investigation the FSA also found that customer data was left in open sacks in a reception area which was yet again another contravention of the regulations. As you would expect, HSBC has since undergone a broad retraining of personnel on the subject of data protection and also confirmed that no customers have reported any financial losses as a result of the lost data.

When you consider that the previous largest fine was £1.3 million, which was issued to Norwich Union, this latest fine reflects the serious nature of the beaches in question and the fact that the regulators appear to be clamping down on such areas of business.

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