Bloomberg News

HSBC Said to Move Fund Operations Unit to Ireland From U.S.

February 02, 2012

(Updates with corporate tax rate in final paragraph.)

Feb. 2 (Bloomberg) -- HSBC Holdings Plc, Europe’s largest bank, will move a fund administration unit to Dublin from New York to control costs, according to a person with knowledge of the situation.

As many as 200 jobs in the operations unit may be eliminated and employees were told about the move at a meeting on Jan. 30, said the person, who declined to be identified as the process is yet to be completed. Some roles may move to Dublin, the person said.

Chief Executive Officer Stuart Gulliver is reversing some of HSBC’s expansion over the past two decades, selling assets and cutting jobs, while reinvesting some of the proceeds in faster-growing markets. HSBC plans to eliminate 30,000 jobs and trim as much as $3.5 billion of expenses over the next two years as it tackles wage inflation in Asia and prepares for stricter capital rules, the bank said in May.

The fund administration business provides accounting and valuation services, corporate and statutory compliance and fund transfers and is part of HSBC’s investment bank. The Wall Street Journal reported the move earlier today. A spokesman for HSBC declined to comment.

Ireland has resisted pressure from countries, including France, to increase its 12.5 percent rate of corporation tax after it was bailed out in 2010. The tax rate and the supply of English-speaking workers has attracted U.S. investors. Allergan Inc., the Irvine, California-based maker of the Botox winkle- smoothing treatment, this month said it would invest as much as $350 million at a factory in Westport in County Mayo.

--With assistance from Joe Brennan in Dublin. Editor: Jon Menon

To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus