Millions of customers have woken up to find their M&S Bank accounts have been transferred to HSBC, following a legal transfer on Monday, June 1. This move, known as a 'passporting' deal, allows HSBC to take over the banking operations of M&S Bank, which was previously a subsidiary of the retail giant.
The transfer is a result of the UK's decision to leave the European Union, which has led to a number of banking and financial services deals. HSBC has acquired the rights to the M&S Bank brand, and customers will see no immediate changes in their accounts. The name and branding of M&S Bank will remain unchanged, and customers will continue to access their accounts in the same way.
However, the transfer does mean that M&S Bank will no longer be regulated by the UK's Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). Instead, HSBC will be responsible for managing the bank's operations, including risk management and compliance.
HSBC has assured customers that the transfer will be seamless and that there will be minimal disruption to their accounts. The bank has also confirmed that customers will not see any changes to their account details, including their account numbers and sort codes.
Responding to the news, Shadow Chancellor Rachel Reeves said, 'This move is a further example of the Conservative Government's failure to protect the interests of UK consumers. The transfer of M&S Bank to HSBC will only serve to increase competition and reduce choice for consumers.'