Company: HBCYF
Filing Date: 2025-02-25
Form Type: 424B5
Source: 0001193125-25-034819
Chunk: 41

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-25
Form: 424B5
Chunk 41
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 the UK CRD V Regulations, we are subject to direct supervision by the PRA, as an approved holding company, to ensure compliance with
consolidated or sub-consolidated prudential requirements and the PRA has additional powers to enforce our compliance.

The failure to meet the PRA buffer or leverage ratios or buffers will not automatically trigger restrictions on distributions; notwithstanding
this, the PRA may impose requirements which could have the effect of imposing such restrictions under its supervisory powers envisaged in the Capital Instruments Regulations and FSMA. In addition, failure to meet the PRA buffer or leverage ratios or
buffers could result in the preparation of a capital restoration plan. Such capital restoration plan may (but will not automatically) impose restrictions on discretionary payments, which may result in the cancellation (in whole or in part) of
interest payments in respect of the Securities.

Changes to the capital and leverage frameworks may increase our capital requirements and
may increase the risk that we will be subject to restrictions on distributions, resulting in our being required to cancel (in whole or in part) interest payments in respect of the Securities. Following the UK’s withdrawal from the EU, the UK
regime continues to develop, with the PRA taking an increasingly significant role in developing the relevant rules. As a result of powers granted by the Financial Services Act 2021, the PRA has revoked elements of UK CRR (as defined under
“Description of the Securities—Definitions”), as it stood as of IP Completion Day, and replaced them with PRA-made rules. In July 2020, the Basel Committee on Banking Supervision
completed the reforms to the Basel III standards (“Basel 3.1”). In the UK, a two-stage approach to implementation has been adopted for these changes. Amendments to UK CRR along with corresponding new
PRA rules, which took effect from January 1, 2022, represented the first tranche of changes to implement Basel 3.1. This included the standardized approach for measuring counterparty risk, the equity investments in funds rules, amendments to
the large exposures rules, and the implementation of the net stable funding ratio. The remaining elements of Basel 3.1 will be implemented as a second tranche of changes. This includes changes to the market risk rules under the Fundamental Review of
the Trading Book, changes to the rules on credit risk, operational risk and credit valuation adjustment, and the implementation of the output floor. On November 30, 2022, the PRA