HSBC set to move most of its US fund services to Dublin
HSBC is to move part of its US fund administration division to Ireland from the US as the multinational seeks to reorganise its business.
The Hong Kong-based firm will move most of its US fund services business to Dublin, resulting in up to 200 people being made redundant in the United States.
Last night a spokesman for the bank refused to comment on whether it would hire replacement staff in Dublin but a recruitment programme is thought likely, although the required staff numbers may not be on the same level as in the US.
"We are not commenting on specifics but as we set out last May we are going through an organisational effectiveness programme.
"The programme is about reducing bureaucracy, adjusting and re-allocating costs, and enhancing the effectiveness and efficiency of our organisation," he added.
The fund services business is part of the firm's "security services" division, but there is no suggestion that other parts of that business would be transferred to Dublin in the near future.
HSBC employs around 400 people in Ireland, mostly in four sectors: corporate banking, private banking, fund administration and insurance services.
The firm remains committed to the US market but has been scaling back certain parts of the business there, and recently sold some of its bank branches in New York state.
The move by HSBC will likely be seen as an endorsement of Ireland as a centre for highly skilled businesses and is indicative of problems that still pervade the banking sector, particularly in the United States.
Faced by a myriad of new regulations in America, several firms are looking for ways to move part of their business beyond US regulators.
Several firms have already closed their proprietary trading desks which drove revenue during the boom but now break US law under the Dodd-Frank bank reforms.