Company: HBCYF
Filing Date: 2025-09-04
Form Type: 424B5
Source: 0001193125-25-195127
Chunk: 29

Company: HSBC HOLDINGS PLC
Filing Date: 2025-09-04
Form: 424B5
Chunk 29
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 1, 2015, the UK Banking Act 2009, as amended (the “Banking Act”), and other primary and secondary legislative
instruments were amended to give effect to the EU Bank Recovery and Resolution

S-21

Directive (“BRRD”) in the UK. The stated aim of BRRD is to provide supervisory authorities, including (at the time) the relevant UK resolution authority, with common tools and powers
to address banking crises pre-emptively in order to safeguard financial stability and minimize taxpayers’ contributions to bank bail-outs and/or exposure to losses.

As the parent company of a UK bank, we are subject to the Banking Act, which gives wide powers in respect of UK banks and their parent and
other group companies to His Majesty’s Treasury (“HM Treasury”), the Bank of England (the “BoE”), the PRA and the Financial Conduct Authority (the “FCA”) in circumstances where a UK bank has encountered or
is likely to encounter financial difficulties. As a result, the Notes are subject to existing UK bail-in powers under the Banking Act and may be subject to future UK
bail-in powers under existing or future legislative and regulatory proposals. In particular, the Banking Act was amended to implement the power to write-down and convert capital instruments and (where the
institution concerned is not a resolution entity) certain internal non-own funds liabilities (“relevant internal liabilities”) (the “capital instruments and liabilities write-down and
conversion power”) and a “bail-in” tool, both of which may be exercised by the BoE (as a relevant UK resolution authority), form part of the UK bail-in
power and may result in the Notes being partially or fully written down or converted to common equity tier 1 instruments. The capital instruments and liabilities write-down and conversion power could be exercised in relation to the Notes and the use
of the capital instruments and liabilities write-down and conversion power does not preclude a subsequent use of the bail-in power.

The capital instruments and liabilities write-down and conversion power may be exercised independently
of, or in combination with, the exercise of a resolution tool (other than the bail-in tool), and such power allows resolution authorities to cancel all or a portion of the principal amount of capital
instruments and relevant internal liabilities and/or convert such capital instruments and relevant internal liabilities into common equity tier 1 instruments when an institution and/or, in the case of a holding company, an institution in its group,
has reached the point of non-viability