HSBC admits violating Consumer Affairs Regulations

Banking giant HSBC, three months ago, admitted to the Consumer Affairs Authority (CAA) that it had violated its regulations when it sent out leaflets to its credit card holders, offering discounts on infant milk products in contravention to the Breastfeeing Code of Practice.

CAA's Director Legal Deepthi Tissera told The Sunday Times FT that HSBC had admitted to being in violation of the law and were subsequently given a warning by the CAA. The CAA Board of Directors had decided not to pursue the matter further or initiate an inquiry since this was the bank's first violation which had stated that it was unaware of the ethics code. If any such incident were to occur again, Tissera said the CAA will take legal action.

Last week the bank, embroiled in a controversy over a US$500 million bond issue to be issued by the Central Bank, said in a statement it always abides by the law, (NG)