The banking giant – which is a key holding of fund managers such as BlackRock’s Richard Plackett, Aberdeen’s Hugh Young and Investec’s Alastair Mundy – is also expected to reach an agreement with the UK’s FSA in the near future.
A report by the US Senate, published in July, said the group had exposed the US financial system to “a wide array of money laundering, drug trafficking, and terrorist financing” through poor controls.
Today’s deal includes a deferred prosecution agreement with the Department of Justice and a “global resolution” with other US government agencies. The UK-based bank also said it has spent $290m on remedial measures and boosted resources dedicated to anti-money laundering compliance.
Stuart Gulliver, group chief executive of HSBC, said: "We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes.
"While we welcome the clarity that these agreements bring, ensuring the highest standards wherever we do business is an ongoing process. We are committed to protecting the integrity of the global financial system. To this end we will continue to work closely with governments and regulators around the world."
HSBC is a popular financial holding among fund managers, owing to its strong global brand and robust balance sheet. FE Analytics show more than 120 funds with the stock in their top-ten holdings, while many others will hold more minor positions in their portfolios.
The bank is the top holding of Richard Plackett and Roland Arnold’s £1.5bn BlackRock UK Special Situations Fund, where it accounted for 5.1% of the portfolio at the end of October.
It is also found in the top-ten holdings of the £5.1bn Aberdeen Global Asia Pacific Equity Fund, which is managed by Young’s Asian equities team, Adrian Frost and Adrian Gosden’s £4.6bn Artemis Income Fund and Mundy’s £2.2bn Investec Cautious Managed Fund.
