Company: HBCYF
Filing Date: 2025-02-25
Form Type: 424B5
Source: 0001193125-25-034819
Chunk: 44

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-25
Form: 424B5
Chunk 44
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 as practicable explaining why this has
happened or is expected to happen. HSBC Holdings is aware that it can expect enhanced supervisory action and may need to prepare a capital restoration plan in such circumstances. If the PRA is not satisfied with the capital restoration plan, or with
HSBC Holdings’ reasons for the shortfall, it will consider using its powers under sections 192C and 192T of the FSMA to require HSBC Holdings to take steps to strengthen its capital position (such steps could include restricting or prohibiting
distributions where that is appropriate and proportionate). Likewise, if HSBC Holdings does not have sufficient CET1 to meet its minimum risk-weighted capital requirements and the combined buffer, automatic restrictions on distributions will apply
under the PRA Rulebook and sections 192C and 192T of the FSMA. As a result, MREL/TLAC requirements may result in the reduction of discretionary payments (in whole or in part), including the cancellation (in whole or in part) of interest payments in
respect of the Securities.

The HSBC Group’s capital requirements, including the Pillar 2A requirements, by their nature, are
calculated by reference to a number of factors, any one or a combination of which may not be easily observable or capable of calculation by you. Moreover, the interaction of restrictions on distributions (including interest payments on the
Securities) with, and impact of, the capital requirements and buffers and leverage framework applicable to the HSBC Group, as well as the implementation of MREL/TLAC requirements, remain uncertain in many respects. Such uncertainty is expected to
continue while the UK authorities develop, through the provision of guidance or otherwise, the current rules and consult on and finalize proposals for future rules to be adopted, including the implementation of Basel 3.1. See “—Risks Relating to the Securities—Other changes in law may adversely affect your rights as a securityholder.” These changes could result in more common equity Tier 1 capital and MREL/TLAC required to be held by a financial institution
in order to prevent maximum distributable

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amount restrictions from applying. As a result of such uncertainty, you may not be able to anticipate whether we will need to reduce discretionary payments, including by cancelling interest
payments (in whole or in part) in respect of the Securities, which may affect the value of your investment in the Securities.

As a holding company, our level of Distributable Items is affected by a