Deals & People May 8, 2007
HSBC To End 401(k) Services
HSBC Bank USA N.A. has notified customers that it will cease providing 401(k) services by year's end.
Reported by Nevin E. Adams
According to Business First of Buffalo, the decision to close the unit was disclosed in an April 18 letter which also stated that ADP Retirement Services had been tapped as a replacement provider for customers of HSBC’s Retirement Financial Services unit. HSBC said shuttering the Retirement Financial Services unit was a “strategic decision.”
In the letter, the bank said that it has an agreement to assist ADP and would be compensated for its efforts if a customer accepts the transition to the new service provider.
HSBC customers have until December 31 to find a new 401(k) service provider.
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