Cyprus-Forum.com

[Malapapa]

Letter sent to the FSA...

The Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS

27 January 2010

Dear Sir or Madam

HSBC and ‘TRNC’

I have been a customer of HSBC for many years. As a law-abiding citizen, I expect financial institutions that I deal with to have full respect, wherever they operate, for legitimate laws and for the rights of human beings.

I was therefore surprised to learn that HSBC, which is under the consolidated supervision of the Financial Services Authority (the ‘FSA’), has a business presence in the self-styled ‘TRNC’ in the northern part of Cyprus.

Presumably the FSA and HSBC are both aware that the ‘TRNC’ area has been illegally invaded, occupied and settled by Turkey. The vast majority of the property in that area belongs to Cypriots displaced by Turkey, in violation of their human and property rights.

Under international law the ‘TRNC’ area remains the territory of the Republic of Cyprus, a member state of the European Union. Moreover, as recently affirmed by the European Court of Justice and the English Court of Appeal in Apostolides v Orams [2010] EWCA Civ 9 (the ‘Orams case’), the judgments of the courts of the Republic of Cyprus over its entire territory, including the ‘TRNC’ area, are enforceable throughout the European Union.

Obviously, any high profile international organisation such as HSBC operating in the ‘TRNC’ is now particularly vulnerable to financially and reputationally damaging litigation if it has violated the laws of the Republic of Cyprus and the property or other rights of displaced Cypriots. Judgments obtained in a Republic of Cyprus court can be enforced against the organisation’s assets across the European Union.

I trust that the FSA, as part of its consolidated supervision, has taken steps to ensure that HSBC, in operating in the ‘TRNC’, (a) is in full compliance with the laws and regulations of the Republic of Cyprus, as the legitimate and internationally recognised local authority; (b) has not infringed the property or other rights of Cypriots displaced from the ‘TRNC’ area; and (c) has not provided banking facilities to those who have benefited from such infringement (which presumably would be tantamount to money laundering).

I look forward to hearing from you before deciding what further action to take.

Yours faithfully

Malapapa

[Malapapa]

Response received from the FSA

10 February 2010

Dear Malapapa

Thank you for your letter dated 27 January 2010.

Firstly, I would like to thank you for taking the time to send us your letter. It is clear from your letter that you retain a keen interest in the UK's economy, particularly in relation to banking.

Unfortunately, the matters that you have raised fall outside of our remit. It is entirely a decision for a firm to make regarding where they have a business presence. The FSA, as an impartial regulator, does not seek to regulate or influence legitimate business decisions of firms and we cannot comment on the commercial decisions taken by a firm.

Also, the Turkish Republic of Northern Cyprus (TRNC) has its own regulator so any firm wishing to do business in that country will need to be regualted by the appropriate regualtor.

I trust I have clarified our position on this subject.

Yours sincerely

Ms L Wilkins
Customer Contact Centre
Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
www.fsa.gov.uk

[Malapapa]

For Cypriots living in the UK, you too may be concerned to learn that the FSA, a UK government agency, appears to recognise the "Turkish Republic of Northern Cyprus" and considers HSBC activites in the north as "legitimate business decisions". You too may consider contacting your MP and appropriate UK government ministers for clarification.

How much more sloppy and inadequate regulation are we to put up with from the UK FSA?

I also expect the Central Bank of Cyprus to be interested in the response from the FSA.

[CBBB]

Why would the Food Standards Agency be interested in HSBC

[Malapapa]

Why would the Food Standards Agency be interested in HSBC

Ever heard of cooking the books?

[Viewpoint]

Why would the Food Standards Agency be interested in HSBC

Ever heard of cooking the books?

ask greece they are experts

[Viewpoint]

Mala what a slap in the Face not exactly the result you expected the word legitimate must have stuck in your throat. They even referred to the trnc central bank as being the regulating body man what a result.

[Gasman]

It occurred to me when I saw the UK This Morning show feature a TRNC holiday complex in their holiday bargains slot that they might not be aware of the situation (they just called it Northern Cyprus - and the complex was, I believe, one on the proscribed list)

But it never occurred to me that an organisation as worldwide and large as the Hong Kong & Shanghai Banking Corporation did not know EXACTLY what the situation was and had probably done their research.

I don't really understand what you expected M. Did you think you'd get a response along the lines of 'oops! This is a bit embarrassing. We had no idea. We will insist they pull out immediately'.

??

[Malapapa]

Mala what a slap in the Face not exactly the result you expected the word legitimate must have stuck in your throat. They even referred to the trnc central bank as being the regulating body man what a result.

You've no idea how useless the UK FCA is, allowing some junior on the customer advice desk to score such a monumental own goal - and on FSA letterhead paper, too!

[Malapapa]

It occurred to me when I saw the UK This Morning show feature a TRNC holiday complex in their holiday bargains slot that they might not be aware of the situation (they just called it Northern Cyprus - and the complex was, I believe, one on the proscribed list)

But it never occurred to me that an organisation as worldwide and large as the Hong Kong & Shanghai Banking Corporation did not know EXACTLY what the situation was and had probably done their research.

Yes but that was pre the landmark Orams court decision. Things have changed. HSBC find themselves in a huge legal hole right now. And I'm sure they know it.

I don't really understand what you expected M. Did you think you'd get a response along the lines of 'oops! This is a bit embarrassing. We had no idea. We will insist they pull out immediately'.

??

I wasn't sure what to expect, but I had no idea they'd be this incompetent.