Employee Handbook – HSBC Holdings plc - HSBC careers site

1.4 Pay1.4.1 Payments to YouYour pay comprises a basic salary and any entitlement to other allowances as stated in your offer letter orother communication from the Company. Any changes will be notified to you in writing or by circular. Yourbasic salary is pensionable and any allowances are non-pensionable, unless otherwise stated.Payment will be made into an account in your name with HSBC Bank plc, in 12 equal monthly instalmentson or around the 20th of each month. This means that you will be paid in arrears for work done up to the20th of each month and in advance for working from the 20th to the end of the month. However,depending on the date in the month you join the Company, the payment period and/or date of your firstsalary payment may vary.Payment is subject in all cases to statutory deductions of income tax and employee national insurancecontributions and any other deductions which the Company may be obliged to make. You will receive amonthly pay statement detailing gross pay and deductions.Further details on this are set out in the Salaries section of the HR Procedures Manual.1.4.2 HSBC Bank plc Bank AccountIt is a requirement of your employment that you maintain an account with HSBC Bank plc, into which yoursalary will be paid. For new entrants working in the Company’s Headquarters this account will usually bedomiciled within the National Sort Code (40-01-00).1.4.3 Salary ReviewThe Company reviews its current levels of pay each year. Any changes to your basic salary, which areawarded at the Company’s sole discretion, will be notified to you by letter, circular or in your monthly paystatement. An increase in a particular year does not give rise to (or expectation of) entitlement to anincrease in the following year or subsequent years thereafter.1.4.4 Discretionary Bonus AwardYou will be considered for a discretionary bonus award dependent upon your annual performance duringthe previous calendar year. Any such payment will usually be made in February. This will enable thesuccess of the Group, measured by its overall Economic Profit, to be established before discretionaryawards are announced. The discretionary award is based upon basic salary as at 31 December in theprevious calendar year. The payment and amount of any bonus award will be entirely at the discretion ofthe Company, and there is no contractual entitlement for you to receive a bonus at any time, irrespectiveof whether a bonus has been paid to you or others on previous occasions.If you leave the Company prior to the payment date or are under notice of leaving the Company but arestill employed at the payment date, you will not receive an award. This includes those employeesresigning following maternity leave.1.4.5 AllowancesYou may be eligible for certain non-contractual allowances, as are applicable at the time. Your offer letteror subsequent communications from the Company will specify the type and level of any allowance towhich you may be entitled. Any subsequent withdrawal or variation will be notified to you in writing or bycircular. Further information is provided in the Allowances section of the HR Procedures Manual.

1.4.6 Overtime and Additional HoursWhere you are required to work beyond your normal hours, payment will be made to clerical gradeemployees, in respect of any such hours, in accordance with the Company's rules on authorisation,eligibility and rates of pay. Overtime payments to new entrants at this level will be made subject to theirsalary not exceeding (currently) £27,000 per annum (and if your normal hours of work are less than 35hours per week, this maximum will be pro-rated to your normal hours of work). Overtime payments arenon-pensionable and are not used in the calculation of any other benefits which are reliant on hoursworked.Key time employees in clerical grades will not be eligible for overtime payments until they work more than7 hours in one day or 35 hours in one week. Any hours worked by key time employees in clerical gradesabove their normal hours, but below the limits for overtime payments, will count as additional contractualhours (“Additional Hours”). Additional Hours are pensionable and will also be used in the calculation ofany bonus payments, where any such payment is calculated on number of hours worked.No overtime payment will be made to management grade employees who work in excess of 35 hours perweek. In exceptional circumstances key time employees who are in a management grade, may bepermitted to work Additional Hours, for which they will be remunerated as set out above in respect ofclerical grade employees.Further details are set out in the Overtime section of the HR Procedures Manual.1.4.7 Public and Bank HolidaysSome employees receive payment in respect of Public and Bank holiday working in accordance with theCompany's policies and procedures on authorisation, eligibility and rates of pay. For further informationplease refer to the Public and Bank Holiday working section of the HR Procedures Manual.1.4.8 Incorrect Pay and Deductions from Pay under the Employment Rights Act 1996(Part II)There may be an occasion when through error or omission you receive less than your contractual payand/or allowances. Should such an unfortunate circumstance arise the Company will rectify the situationand any contractual pay and/or allowances not paid to you will be paid on the first opportune pay-dayfollowing notification or identification of the omission or error. Conversely, if any error or omission resultsin any overpayment of pay and/or allowances being made to you it is accepted that the Companyreserves the right to deduct any such overpayment(s) from salary on the first opportune pay-day followingidentification or notification. The Company will take into account individual circumstances and try toachieve a jointly agreed repayment schedule.In the event that the overpayment is made in respect of your final salary payment (or other payment dueon termination of employment), or if you are under a repayment schedule and your employmentterminates, the Company reserves the right to request that you repay such sums owed, on demand.If your employment ends and the number of days holiday you have taken exceeds your prorataentitlement for the holiday year, an appropriate deduction will be made from your final pay or if this is notpossible the Company reserves the right to request that you repay such sum on demand. The Companywill give you an opportunity to discuss the proposed repayment, and the Company will take into accountyour personal circumstances prior to determining a repayment schedule.If the holiday entitlement you have taken is less than your pro-rata entitlement and it is not operationallypractical for the outstanding days to be taken during the notice period, payment in lieu of outstandingholiday entitlement will be made. Holiday pay in lieu accrues pro rata throughout each holiday year on thebasis of a working year of 260 working days.

Payments or deductions will not be made in respect of any Bank or Public holidays accrued or taken inexcess of entitlement.If you are summarily dismissed or leave the Company without giving due notice, you will not be entitled toany payment for accrued holidays or holiday pay.1.4.9 Tax and National Insurance on BenefitsEach year the Company will issue to you a P60 Certificate, which states your total earnings anddeductions for the tax year ending 5 April.If you earn at the rate of £8500 or more (set by HM Revenue & Customs) in any tax year including"benefits in kind", you will be liable to tax on the financial value of those benefits. Benefits in kind includeitems which may be provided to you periodically by the Company such as private health insurance, carsand beneficial rate loans.If you need to communicate with HM Revenue and Customs, quote your tax reference and NI number,both of which are given on your pay statement. Address any queries to:HM Revenue and CustomsWest Yorkshire and Craven AreaCentenary Court1 St Blaise WayBradfordWest YorkshireBD1 4YLTelephone: 0845 302 14321.5 Performance ReviewEach employee’s performance is reviewed annually, the present review period being the calendar year.1.6 Hours of Work1.6.1 GeneralDifferent working arrangements apply depending on your grade. Such working arrangements relate bothto the number of normal hours worked in a week (based on a full time position) and to the way normalhours may be scheduled. In particular, you will note that some employees work on ‘non-flexible’schedules and other employees work on ‘flexible’ schedules. Whether you work on a non-flexible orflexible schedule depends on your grade, work location and your job in the Company. Details of whichgrades are on non-flexible or flexible schedules are set out below.(i) Non FlexibleGrades starting with BG: The standard working week is 35 hours and this is normally for 7 hours per day(excluding a one hour unpaid lunch break) Monday to Friday inclusive. The normal working day, unlessadvised otherwise, will be 9.00am to 5.00pm Monday to Friday inclusive. The Company can vary, bymutual agreement, the start and finish time between the hours of 8.00am and 10.00am and 4.00pm and6.00pm respectively.(ii) FlexibleGrades starting with BW: The standard working week is 35 hours. Unless otherwise stated your schedulewill normally include a one hour unpaid lunch break each day. Specific schedules will be advised to youlocally or set out in your offer letter, but may be changed, on reasonable notice, within the followingparameters:

• The maximum number of days you may be required to work in any week is 6, over 7 calendar days,Monday to Sunday.• The days of the week on which you work need not be consecutive.• Unless agreed otherwise, your scheduled daily working hours will be a maximum of 10 working hoursper day.The parameters set out above apply to both clerical and management grade employees up to andincluding Band 4.Senior management employees at Band 3 and above are required to work such hours as are necessaryfor the proper fulfilment of their duties.1.6.2 Overtime and Additional HoursThe Company aims to ensure that persistent overtime or additional hours are unnecessary.However, occasions may arise where, due to unforeseen or unavoidable circumstances, you may berequired to work beyond your normal hours. See also Section 1.4.61.6.3 Working Time Regulations 1998The above regulations set limits on working hours and create a legal entitlement to minimum rest breaksand paid holiday entitlement. Further details on the regulations appear in the Working Time Regulations1998 section of the HR Procedures Manual.1.7 Leave1.7.1 Holiday EntitlementThe Company’s holiday year runs from 1 January to 31 December each year.During Core Leave (ie the minimum number of days holiday per year which must be taken consecutively),employees must be physically away from their workplace and actively discouraged from participating inwork-related activities from a remote location eg accessing Blackberry. Line managers must not placeemployees under duress to respond to work-related matters during core leave and it is acceptable for anemployee not to undertake any work-related activity during this period.Employees may attend training courses, conferences or conventions during their core leave as long asthe events are not held on HSBC Group premises. Such events must not account for more than 50% ofthe core leave period.Minimum core leave is calculated as below:CategoryFull time employees with 20 or more daysannual leave allowancesPart time employeesMinimum Core Leave10 working days, which may include Bank andPublic Holidays that fall on normal working days.Pro rata the above calculations ie an employeeworking 3 days a week with an annual leaveallowance of 12 days (full time equivalent allowanceof 20 days), should take a minimum core leave of 6working days, (ie two working weeks of 3 days aweek).Any holiday entitlement not taken by 31 December normally may not be carried forward to a subsequentholiday year. The dates when holiday entitlement are to be taken must be agreed in advance with yourmanager.

(i) Clerical GradesGrades BW7 and BW8 are entitled to 25 days’ paid leave.Grades BG7 and BG8 are entitled to the following:GradePaid leave (working days)BG8 23BG7 25• For grade BG8 an additional day's leave will be granted for every two complete years of serviceuntil 25 days have been reached.• For grades BG7 and BG8, once 25 days has been reached, an additional day's leave will begranted for every five complete years of service up to a maximum of 27 days.Additional leave entitlement based on years of service will be given in the holiday year in which therelevant length of service is achieved.Additional days are awarded upon promotion and additional days according to seniority will be confirmedto eligible employees in their contract of employment letters.Different arrangements may apply where holiday entitlement has been red-circled.(ii) Management Grades• Band 6: 28 working days.• Band 5 and above: 30 working days.(iii) PromotionOn promotion any holiday entitlement will be adjusted pro-rata for the remainder of the holiday year.(iv) Key Time EmployeesEmployees whose normal hours are less than 35 hours per week are entitled to paid holiday which isproportional to their normal hours, when compared to the holiday entitlement for a full time employee.Individual entitlement will be set out in your offer letter or will be provided by your line manager.(v) Commencing or Leaving Employment during the Holiday YearIf your employment starts or finishes part way through the Company’s holiday year your holidayentitlement will be directly proportional to the actual period worked during that holiday year.Please see Section 1.4.8 regarding pay in respect of holiday upon termination of employment.1.7.2 Public and Bank HolidaysThe recognised Public and Bank holidays are: New Year's Day, Good Friday, Easter Monday, May BankHoliday, Spring Bank Holiday, August Bank Holiday, Christmas Day and Boxing Day.In addition to the holiday entitlement in Section 1.7.1, employees whose normal working hours are 35hours per week will receive 8 days in recognition of the Bank and Public holidays.Key-time employees will receive an entitlement in respect of Bank and Public holidays which isproportional to their normal hours of work.Individual entitlement will be set out in your offer letter or will be provided by your line manager.Further details are set out in the Public and Bank Holiday working section of the HR Procedures Manual.1.7.3 Time Off for Medical Appointments

You may be granted paid time off to attend medical (including dental and optician) appointments whichcannot be arranged outside working hours, subject to such policies and procedures on authorisation asmay apply locally. Such appointments should, where possible, be made close to the beginning or end ofyour working day. Where you choose to make a medical appointment in the middle of the working day,rather than re-arrange this for a more operationally convenient time, you may be asked to work additionalhours to cover the time taken off for such appointments.Pregnant women who attend ante-natal care appointments are entitled to paid time off and will not beasked to work any additional hours to cover time taken off for such appointments.1.8 Absence from WorkYou must wherever possible gain prior agreement from management before being absent from work. Inthat case an explanation satisfactory to the Company must be given for your absence.If you do not have your manager’s prior agreement to your absence you must:• Comply with the Company's rules and procedures if the absence is due to your sickness or injuryas set out below; or• If your absence is due to any other reason you must telephone management at your normalstarting time, or as soon thereafter as is reasonably practicable, in order to advise of yourabsence and provide a satisfactory explanation for the absence.When you return to work you must attend a return to work interview.If the Company considers that the explanation you have given for your absence, verbally, in writing, orthrough your self certification form, to be unsatisfactory or false then action under the Company’sdisciplinary procedures may be taken against you.Further details on absence are set out in the Absence management section of the HR ProceduresManual.1.8.1 Absence Due to Sickness or InjuryIf you are unable to attend work because of your sickness or injury you must telephone management atyour work location no later than your normal starting time (or as soon thereafter as reasonablypracticable) in order to advise them of your absence and its reason.If your absence lasts for seven calendar days or less you will need to complete a self certification form.If your absence exceeds, or is likely to exceed, one calendar week, you must consult your doctor andobtain a medical statement expressing the doctor's opinion of the reason for your absence from work.This must be sent by post or delivered to your manager. If further certificates are required, these mustalso be sent to your manager by post or delivered. If your illness lasts longer than one calendar week,you should contact your manager to advise him or her of your current prognosis at least once a week,unless agreed otherwise.You may be asked to give your consent for the Company to obtain a prognosis from your doctor. Youmay also be required to visit a medical adviser appointed by the Company and you will also be requestedto give your consent to any report prepared by such medical adviser being disclosed to the Company.Reporting requirements may be varied by local arrangement at your place of work, when any particularrequirements will be brought to your attention during your employment. If you are unclear about thearrangements in place you should speak to your line manager.1.8.2 Salary and Other Payments During Periods of Absence

Employees whose normal hours are less than 35 hours per week are entitled to the payments describedin this section in proportion to their normal hours, when compared to the entitlement for a full timeemployee.No salary or other allowances or bonus payments will be paid for periods of unauthorised absence.Payments may be made for periods of absence due to reasons other than sickness or injury at theCompany’s absolute discretion.Subject to you following the absence rules laid down by the Company, normal pay less any Statutory Sickpay (“SSP”), Incapacity Benefit or other similar benefit, known as ‘Company Sick Pay’ will be continuedfor a limited period during authorised absence due to sickness or injury. The period for which CompanySick Pay will be paid currently depends on the length of your service with the Company and is as follows:• For those employees whose employment with the Company commenced on or after 1 April2001:ServiceLess than 3 yearsBetween 3 and 5 yearsOver 5 yearsMaximum period of Company Sick Pay grantedeight weeks (40 working days)16 weeks (80 working days)26 weeks (130 working days)Calculation of Company Sick Pay eligibility will be based on a rolling twelve month period whetherabsence is due to a single illness or a succession of illnesses.Note: Employees who have transferred from elsewhere in the Group may have had their prior entitlement‘red circled’. If this is the case, details will be contained in their contract or letter of appointment.• For those employees whose employment with the Company commenced prior to 1 April2001:ServiceLess than 2 yearsBetween 2 and 3 yearsBetween 3 and 5 yearsOver 5 yearsMaximum period of Company Sick Pay granted*eight weeks (40 working days)16 weeks (80 working days)26 weeks (130 working days)52 weeks (260 working days)Service in years refers to continuous service at 6 April each year.Maximum period is the maximum granted in any one year starting 6 April whether absence is owing to asingle illness or succession of illnesses.Note: Employees who have transferred from elsewhere in the Group may have had their prior entitlement‘red circled’. If this is the case, details will be contained in their contract or letter of appointment.

• For all employees:The Company reserves the right to limit paid sick leave in respect of a single continuous sicknessabsence, or a succession of related sickness absences (for example, due to a common underlyingcause). The maximum period of normal pay granted in such cases may be restricted to that applying onthe day the first absence commenced (see table above) irrespective of whether absence extends beyond6 April, into a second sick leave year.‘Company Sick Pay’ includes salary and other contractual allowances.Company Sick Pay includes any entitlement you may have to Statutory Sick Pay (SSP). If Company SickPay ceases, you may still be entitled to SSP (for up to 28 weeks’ sickness in total). The Companyreserves the right to refuse to pay Company Sick Pay (including SSP) if it has reasonable cause to thinkthat you are not genuinely sick, or are abusing the sick pay policy.You should be aware that the Company may reduce any element of your holiday entitlement which is inexcess of your minimum statutory entitlement for the holiday year on a pro-rata basis related to yourattendance during that year. Any bonus arrangements, as may exist, may also be affected.Should your SSP entitlement exceed Company arrangements then, on exhaustion of any Company SickPay, you will be paid SSP in accordance with your statutory entitlement. Payment of SSP is dependent onyou satisfying rules regarding periods of incapacity, the period of entitlement, qualifying days and rules forthe notification of absence.If you are absent from work due to an accident or a condition sustained on or off duty that is the fault of athird party, you should immediately notify the Company of all the relevant circumstances and any claim,settlement or judgement made in connection to it and any Company Sick Pay paid to you in respect ofsuch absence will be recoverable by the Company only if, and to the extent that, you recover damages inrespect of your injury, condition or absence from work. You will be notified if these circumstances apply.Further details are set out in the Absence Management section of the HR Procedures Manual.1.9 Location and MobilityYour initial location will be as stated in your offer letter from the Company. You may be required to travelto customer or supplier premises and on occasion to attend training sessions and meetings elsewhere.There may also be times when the Company needs you to be flexible with your work location, which maymean a permanent or temporary move. Subject to business needs, the Company will, wherever possible,take into account your personal and domestic circumstances before requiring you to move. Set out beloware the Company’s mobility requirements. Although the general mobility requirement is dependent ongrade, the Company’s requirements under any business recovery plan (see Section 1.9.3) apply to allgrades. Employees whose work location is stated as ‘home’ in their offer letter are also covered by theserequirements.Some employees may have the option of working from home from time to time by mutual agreement inline with business needs. However, this arrangement is not contractual and the employee’s base remainsas stated in their offer letter.1.9.1 ManagementIf you are a management grade employee you may be required to work at or from any office or location ofthe Company or within different companies of the HSBC Group (as defined in Section 1.24). A change ofyour place of residence may be required from time to time at particular stages of your career, althoughthe Company will wherever possible and before requiring you to move take into account your personaland domestic circumstances.

1.9.2 Clerical GradeIf you are a clerical grade employee you may be required to work at or from any office or location of theCompany or the HSBC Group (as defined in Section 1.24) in the UK, within reasonable travelling distanceof your existing location or your home. What is deemed a reasonable journey will depend on a number ofcircumstances that will include normal travelling time and public transport availability.1.9.3 Business Recovery PlansThe Company has business recovery plans in place in the event of a major disaster taking place and theworking environment being compromised. Depending on the nature and longevity of the disaster and thenature of the role you are carrying out at the time, you may be identified as a key member of staff. If youare identified as such, you may be contacted and expected to report for work at a different site, for atemporary period, to recover critical business disruption.1.10 Cars1.10.1 Management Car SchemeEmployees in Band 4 and above are eligible to participate in the HSBC Company Car Scheme (the “CarScheme”) subject to the existence of and rules of the Car Scheme as they may exist from time to time.If your normal hours are less than 35 hours per week, the benefit will be pro rata to your normal hours.If you change your normal hours, any contributions/cash back will be adjusted accordingly.For further information please refer to the Car scheme section of the HR Procedures Manual.1.10.2 Management Car LoanEmployees who are in Band 5 may apply for a management car loan subject to its existence, limits andterms as may apply from time to time.Should you subsequently become eligible to participate in the Management Car Scheme no further carloans will be agreed, but any existing car loan can continue until normal expiry or until the car is soldwhen the loan must be repaid.For further information please refer to the Car loan section of the HR Procedures Manual.1.10.3 Motoring OffencesIf, as a result of a motoring offence, you lose your driving licence and as a consequence are not able toundertake your duties satisfactorily you must make suitable alternative arrangements acceptable to theCompany to enable you to perform your contract of employment.If you are not able to do so the Company will attempt to identify an alternative position, not involvingdriving. However if this is not possible or you do not accept the alternative position then your employmentwill be terminated, by the Company, by giving due notice.It is accepted that should an alternative role be identified, your salary, benefits and all other terms andconditions of employment would mirror that of an employee at that grade and level and not that of yourcurrent position. Any such alternative role will normally be an established position. You will therefore notbe entitled to automatically return to your current role if your driver’s licence is returned, although you willbe able to apply and be considered for positions which require a driving licence.1.11 Expenses

You will be reimbursed for expenses incurred on the Company's business which are:• Incurred and claimed strictly in accordance with the Company's rules on expenses; and• Supported by the appropriate level of authorisation and documentation.To take best advantage of the Company's buying power, arrangements exist for purchase of certainservices through given suppliers or through a central point. Such arrangements must be complied with.Further details are available in the eExpenses Policy, which is available via Lotus Notes from theeExpenses database.1.12 Retirement and PensionsThe normal retirement age in the Company is currently 65 and your employment will terminateautomatically at the end of the month in which your 65th birthday occurs, in accordance with theRetirement policy as stated in the HR Procedures Manual. Your ‘pensionable retirement age’ isdetermined by the section of the Pension scheme of which you are a member and is shown on yourpension statement (age 60 for most employees). This will mean that, when you reach your ‘pensionableretirement age’ you will still be able to decide whether to retire or whether to continue to work until 65, ifyou are under 65 at that time.1.12.1 The HSBC Defined Contribution Retirement Benefit SchemeThe HSBC Defined Contribution Retirement Benefit Scheme (“DCS Scheme”) is applicable to employeeswho entered service on or after 1 July 1996.The DCS Scheme is contracted in to the State Second Pension (S2P) which replaced the State EarningsRelated Pension Scheme (SERPS) in April 2002.The DCS Scheme is a savings style type of pension which provides:• A pension on retirement.• An ill-health pension (which currently applies if you have five years membership and are unableto continue in employment because of serious ill-health); and• Security for your dependants, which is currently:• A lump sum of four times pensionable salary if you die in service plus a refund of your ownpensions contributions.• A spouse's or civil partner’s pension.• A children's allowance.It is important to note that completion of the Expression of Wish form and/or Specified DependantsNomination form can assist the Trustee when making payments in the event of your death.Provided that you are aged 23 or over when you commence employment, you will automatically becomea full member of the DCS Scheme for pension, life insurance and other benefits. This means that acontribution of 2% of monthly pensionable salary will automatically be deducted from your monthly payand paid to the DCS Scheme as a contribution towards your future pension. Further details on thecontributions the Company will make to the DCS Scheme for your future pension are set out in the DCSScheme Explanatory Booklet.If you are under the age of 23 at the time of commencing employment you will be automatically admittedto the DCS Scheme for life insurance and qualification service towards an ill heath pension. When youreach the age of 23 (provided that you are still an employee of the Company), the contribution of 2% ofmonthly pensionable salary will automatically start to be deducted from your monthly pay and paid to theDCS Scheme as a contribution towards your future pension. You may also make contributions to the DCSScheme for your future pension before you reach the age of 23. Details on how you may do this are setout in the DCS Scheme Explanatory Booklet.

Further details about the DCS Scheme, including the DCS Scheme Explanatory Booklet, an illustrator ofpotential pension benefits, Frequently Asked Questions and details of the DCS Scheme AdministrationTeam, are available on the DCS Scheme intranet site (http://dcsscheme.hacl.uk.hsbc ). You can also call7970 5350 (Internal) or 0845 6095050 (External).The pension benefits detailed in the Handbook are subject to the Trust Deed and Rules of the DCSScheme which may be changed from time to time to the extent permitted by the Trust Deed and Rules.1.12.2 The HSBC Bank (UK) Pension Scheme - Defined Benefit SectionThe Defined Benefit Section (“DBS Scheme”) is applicable to most employees in service before 1 July1996.The DBS Scheme is based on your final salary and pensionable service accrued during your membershipof the DBS Scheme. The DBS Scheme provides:• A pension on retirement.• An ill-health pension (if you have five years membership and are unable to continue in employmentbecause of serious ill-health); and• Security for your dependants:• A lump sum of four times pensionable salary if you die in service.• A spouse's or civil partner’s pension.• A children's allowance.Further details about the DBS Scheme, including the DBS Scheme Explanatory Booklet and details of theDBS Scheme Administration Team are available on the DBS Scheme intranet site(http://dbsscheme.hacl.uk.hsbc).Important points to note are:• The scheme is non-contributory. The total cost of the scheme is met by the employer.• Completion of the Expression of Wish form and/or Specified Dependants Nomination Form can assistthe Trustee when making payments in the event of your death.• The DBS Scheme is contracted-out of the state second pension (S2P) which replaced the StateEarnings Related Pension Scheme (SERPS) in April 2002.• Employees who joined the DBS before 1 January 1975 have the option to retire from age 55, (withprovision for a reduction of part of the pension in some cases) subject to providing notice to theCompany in accordance with their contract of employment.• Ill-health pensions are based upon your actual period of pensionable service accrued to the date ofactual retirement. This may be further enhanced at the discretion of the Trustee, provided it is satisfiedthat your illness is severe, with no likelihood that you will recover or be able to undertake any gainfulemployment in the future.• You are eligible to pay additional voluntary contributions (AVCs) through one of the scheme’s AVCproviders to increase your benefits payable from retirement.You can also call the DBS Scheme Administration Team on 7970 5318 (Internal) or 01727 885318(External).If you are a member of the ex LSPF section of the HSBC Bank (UK) Pension Scheme, please contact theDBS Scheme Administration Team for further details.The pension benefits detailed in the Handbook are subject to the Trust Deed and Rules of the DBSScheme which may be changed from time to time to the extent permitted by the Trust Deed and Rules.1.13 Standards of ConductAs a leading member of the global financial community, our business is based on the utmost integrity andmutual trust. In order to maintain and safeguard the trust and confidence of our customers and the public,the Company places paramount importance on the maintenance of certain standards of conduct. The

Company’s standards of conduct are principally made up of certain rules, regulations and ethicalprinciples. These are set out in sections 1-3 of the Handbook and it is essential that you familiariseyourself with the content of the Handbook and observe the Company’s standards of conduct. In additionother specific rules and regulations may apply in your place of work and will be brought to your attentionduring your employment.Due to the need for integrity and trust in our business and the rapidly developing nature of the business, itis not possible to set out standards of conduct in every situation. You should seek guidance from your linemanager should you be in any doubt about the correct action to take in any situation.A failure to abide by the standards of conduct may lead to disciplinary action being taken, includingdismissal.1.14 ConfidentialityYou must from the date of the commencement of your employment and thereafter, observe strictconfidentiality in respect of any and all information held by the Company, including dealings, transactions,procedures, policies, decisions, systems and other matters of a confidential nature of and concerning theCompany, the HSBC Group and allied or associated companies of the Company or Group (all suchsubsidiary and other companies being referred to as “the Companies”). Such confidentiality relates to anyand all transactions (including but not limited to the state of any account and matters relating tocustomers’ or clients’ business or personal affairs) of the Company or the Group and of each of theCompanies with their respective customers, clients, suppliers or associates, except when required orauthorised to disclose such information by the Company or by law.You should be aware that any breaches of the above, including the unauthorised "browsing" of accounts,is likely to lead to disciplinary action and may result in dismissal for gross misconduct.Disclosure of customers’ or clients’ business or personal affairs is not permitted without the customers’ orclients’ authority. This is a requirement of bankers' confidentiality, the Banking Code and the DataProtection Act 1998. Any contravention may lead to action under the disciplinary procedures, as well asindividual liability under data protection legislation.If you are approached by any third party, in particular any media source, and asked to make anycomments or provide any information to such persons, under no circumstances should you respondwithout having sought permission and guidance from your line manager who, where appropriate andnecessary, will seek permission and guidance from Group Corporate Affairs. Guidelines on regulationsand procedures regarding the handling of information relating to customers, clients and employees areset out in the HR Procedures Manual (Data Protection - use, retention and disclosure of personal data;and Data Protection – regulations for staff files).Nothing in this clause prevents you from making a protected disclosure under the Company’s whistleblowingprocedure, in respect of any malpractice or unlawful conduct. Further details on the Company’swhistle-blowing policy are set out in Section 3.9 of this Handbook or are available in the Whistle-blowingsection of the HR Procedures Manual.1.15 Inventions and Other Intellectual PropertyYou may make inventions or create other intellectual property during your employment. In this respectyou have a special responsibility to further the interests of the Company and the HSBC Group given yourposition at the Company and the remuneration paid to you under your contract of employment.In recognition of your position, remuneration and responsibility, you acknowledge and agree that anyinvention, improvement design, process, information, copyright work, trade mark, trade name or get-up orany other intellectual property (together the “Intellectual Property”) made, created or discovered by youduring your employment (whether capable of being patented or registered or not) in conjunction with or inany way affecting or relating to the business of any company in the Group or capable of being used or

adapted for use in such a company or in connection therewith shall be immediately disclosed to theCompany and shall belong to and be the absolute property of the Company or such member of the Groupas the Company may direct.However, the above clause shall only apply to the extent that any invention was made by you in thecourse of your Duties and (i) such invention was reasonably expected to result therefrom; or (ii) at thetime of making the invention, because of the nature of your Duties and the particular responsibilitiesarising therefrom, you have a special obligation to further the interests of the Company. For the purposeof this clause ‘Duties’ means in the course of your duties or in the course of duties falling outside yournormal duties but which have been specifically assigned to you.You acknowledge that you have no rights, interest or claims, either during your employment or after thetermination of your employment, in or to any such Intellectual Property and you shall not use suchIntellectual Property other than during the period of your employment and for the purpose of the Companyor the Group.If and whenever required to do so by the Company, (whether during your employment or after itstermination), you shall at the expense of the Company or such Group company as the Company maydirect:• Apply or join with the Company or such Group company in applying for letters patent or otherprotection or registration in the United Kingdom and in any other part of the world for any suchIntellectual Property; and• Execute and do all instruments and things necessary for vesting the said letters patent or otherprotection or registration when obtained and all right title and interest to and in the sameabsolutely and as sole beneficial owner in the Company or such Group company or in such otherperson as the Company may specify.You agree that you irrevocably and unconditionally waive all rights under Chapter IV of the Copyrights,Designs and Patents Act 1988 in connection with your authorship of any existing or future copyright work,in whatever part of the world such rights may be enforceable.Nothing in this clause shall be construed as restricting your rights or those of the Company under thePatents Act 1977 and in particular, sections 39 to 43 Patents Act 1977.The above clauses are specific to the laws applicable in the United Kingdom.1.16 Employee RecordsIn accordance with data protection legislation, it is important that the Company's confidential personalrecords are maintained as accurately as possible. You must record any change in your personalcircumstances (such as a change of your name, address or marital status) in the way set out in theEmployee records section of the HR Procedures Manual, ie using My HR Desktop.Employees in a position regulated by the Financial Services Authority must also ensure that any adversechange in their credit or other status is notified to their line manager, as this may affect their standing withthe Financial Services Authority.1.17 Notice Periods1.17.1 Termination of Employment by the CompanyEmployees are entitled to a minimum notice period of termination from the Company, as set out below, orto any such longer period as may be statutorily required, unless your employment is terminatedsummarily on the grounds of gross misconduct.The Company's notice may be handed to you personally or sent to your last recorded address.

Notice periods applicable when the Company terminates your contract of employment are currently asfollows:(i) Bands 5, 6, 7 and 8ServiceMinimum NoticeDuring the first five years of continuous One calendar monthemployment:After 5 years of continuous employment andup to 12 years of continuous employment:One week per completed year of continuousemployment12 or more years of continuous employment: 12 weeks(ii) Band 4The Company will give you at least three calendar months' notice.(iii) Band 3 and aboveThe Company will give you at least six calendar months' notice.1.17.2 Termination of Employment by You(i) Bands 5, 6, 7 and 8Unless otherwise agreed, you are required to give the Company at least one calendar month's notice inwriting, which you must ensure is received by your line manager before the notice begins to run.Verbal resignations will not be accepted.(ii) Band 4 and aboveUnless otherwise agreed, you are required to give the Company at least three calendar months' notice inwriting, which you must ensure is received by your line manager before the notice begins to run.Verbal resignations will not be accepted.1.17.3 Garden LeaveThis paragraph applies to any notice period, regardless of whether notice was given by you, or by theCompany.The Company shall be under no obligation to provide you with any work and may at any time require youto stop carrying out your duties and to no longer attend your place of work (often known as ‘gardenleave’) or contact any employees, offices, officers, customers or clients of the Company for the duration ofthe notice period. Alternatively, the Company may provide you with work of a different nature to thatwhich you would normally perform under your contract of employment, and at a different location, duringyour notice period.During any such period you will continue to be bound by the terms and conditions of your contract ofemployment and you will receive pay and most contractual benefits in the normal way.If you have any accrued, but untaken leave, you will be deemed to have taken this during any such periodwhen you are not in attendance at work, provided that you are not carrying out any work on behalf of theCompany during such a period.1.18 Return of Property

On the termination of your employment for whatever reason, or at any time at the Company's request,you must immediately deliver to the Company, or to anyone specified by the Company, any and all books,documents, records, computer hardware and software and other disks or tapes kept or made by you andin your possession or control relating to the Company’s business, your computer, mobile, blackberry, anymaterials, credit cards, keys, passes, cars, equipment or other property (including any copies, drafts,extracts, summaries or reproductions of such property) belonging to or related to the business of theCompany, or any other company within the HSBC Group, its or their clients, customers or suppliers andyou must not retain any other documentation or property of the Company, or the HSBC Group, in yourpossession or control.1.19 Competition Obligations1.19.1 Confidential InformationFollowing termination of your employment, you will continue to be bound by your obligations ofconfidentiality, as set out in Section 1.14. In particular, you shall not divulge, use, or in any other waycause to enter into the possession of a third party, any lists or details of customers, or products, or anyitem of confidential information, or knowledge that was gained by virtue of your employment, or in respectof which the Company or any company in the HSBC Group is bound by an obligation of confidence to athird party.1.19.2 Post Termination ObligationsSubject to any post termination obligations set out in your contract of employment, if you are a seniormanagement level (Band 3 and above), the following additional obligations apply on termination of youremployment for whatever reason:• For a period of nine months commencing with the date of the termination of your employment with theCompany you will not, whether on your own behalf or any other person, company or firm, solicit for thepurpose of offering or performing banking or related financial services, any customer or client of theCompany with whom you have had personal contact - whether by way of a meeting, telephone, letteror otherwise - during the period of 18 months immediately preceding the date of termination of youremployment.• During your employment and for the period of 12 months commencing with the date of the terminationof your employment you will not solicit or contact any employee of the Company with whom you haveworked during the previous 12 months or, in the case of termination, during the 12 months prior toyour termination, for the purposes of inducing them to enter a contract of employment or an agencyarrangement or a contract for services other than with the Company.1.20 Disciplinary1.20.1 Rules and ProcedureContravention of any of the terms of your contract of employment or the Company’s standards of conduct,rules, regulations, compliance requirements and other rules which may apply to you is viewed mostseriously and will normally result in disciplinary action (which could include dismissal) being taken underthe Company's Disciplinary Procedures. The Company’s Disciplinary Procedures are set out in the HRProcedures Manual, which is available on the GMO HR intranet (via Project Link) at your place of work.If you are dissatisfied with a disciplinary decision relating to you, then you can appeal to HR Connect(Employee Relations Team, HR Connect, Mayfields Court, Maylands Avenue, Hemel Hempstead, Herts,HP2 4SE) or other person, as set out in the Disciplinary Procedures. Such appeals will normally be heldby a level of management above the level responsible for the decision.Full details of how to go about this and the steps that follow such an application are set out in full in theDisciplinary Procedures section of the HR Procedures Manual.1.20.2 Disciplinary Sanctions

Where you have been the subject of disciplinary action under the Disciplinary Procedures and after theprocedure has been exhausted it is decided a disciplinary sanction, short of dismissal, should beimposed, the Company may impose on you one or more of the following sanctions:-(a) A disciplinary transfer to an alternative place of work.(b) A downgrading with reduction in pay.(c) Forfeiture of pay; loss of a specified amount of pay related to an offence(s).(d) Stoppage/postponement of your next pay award, either salary and/or discretionary bonus.(e) Reduction in pay.These sanctions are either in addition to or in replacement of any other disciplinary sanction whichappears appropriate to the particular circumstances.1.21 Grievance ProcedureIf you have a grievance related to your employment, you have a right to apply in writing for redress. Youshould normally raise your grievance with your line manager, informally in the first instance. Full details ofhow you should go about this, and how your grievance will be dealt with, are set out in the Company'sGrievance Procedure.The Grievance Procedure is set out in the HR Procedures Manual.1.22 Variation and ChangesAny variations and changes to your individual terms and conditions of employment will be notified to youin writing within one month of the change(s), by email or by circular or via your pay statement.1.23 Rights of Third PartiesThe Contracts (Rights of Third Parties) Act 1999 allows persons (including companies) to gain rightsunder a contract, even if they are not a party to the contract, unless the contract states otherwise.No person who is not a party to this contract has or shall have any rights under the Act to enforce anyterm of this contract. No consent of any third party shall be required under that Act to terminate or changethis contract.1.24 Definition of Group“HSBC Group” or the “Group” means, for the purpose of these terms and conditions, HSBC Holdings plcand any company that for the time being is a holding company of HSBC Holdings plc or a subsidiary ofHSBC Holdings plc or a subsidiary of a holding company of HSBC Holdings plc (and the terms subsidiaryand holding company shall have the meanings ascribed thereto by section 1159 of the Companies Act2006) and/or an associated employer of HSBC Holdings plc as defined in section 231 of the EmploymentRights Act 1996.

2. Code of Business Ethics and Responsible Behaviour ('the Code')The world of financial services is founded on mutual trust and public confidence. These attributes have tobe earned and sustained over a long period by the successive generations of people who work in thebusiness and can be lost overnight by irresponsible or unethical behaviour. The purpose of this Code is toset out in some detail the enduring principles which have traditionally been observed throughout theCompany. They fall under three general principles - integrity, fidelity and self-respect - basic qualitieswhich the Company expects of every employee. They also include certain corporate values to which theCompany subscribes and which must govern our business ethics.These qualities are also reflected in the Core Standards of Behaviour which form part of the performancemeasurement process. The Core Standards of Behaviour are set out at Section 2.5 of the Handbook.Whilst the Code is not contractual, it does form part of the general standards of conduct which theCompany expects all employees to reach. Failure to abide by the Code may result in disciplinary actionbeing taken against you, which could include dismissal.The Code (including the Core Standards of Behaviour) may be altered or modified from time to time bynotice to you or by circular.2.1 IntegrityIntegrity implies being fully worthy of the trust placed in us by our clients and employer by being honest,impartial and truthful. This means:• Acting at all times in an honest and upright manner both in our corporate and personal dealings,recognising that our personal conduct may reflect on the Group.• Scrupulously refraining from illegal, fraudulent, dishonest or unethical behaviour, particularly in relationto financial and/or business dealings.• Never using confidential information for personal gain or abusing the trust placed in us by theCompany and our customers.• Avoiding conflict between self-interest and the interest of the employer or customer, and being readyand willing to disclose any potentially compromising or conflicting business relationships orshareholdings.• Ensuring that where the employment of relatives of existing employees is being considered that theexisting employee is not involved in the decision making process of recruitment, salary, promotion orretention. In addition, relatives should not be involved in the transacting, processing or auditing of thesame activity. It is important to ensure that there are no conflicts of interest in the roles of the relatives.• Observing rules for personal dealings in securities.• Avoiding gifts, services or hospitality, on a scale which could be interpreted as affecting integrity or theability to exercise independent judgement (see also the rules at Section 3.6 of this Handbook).• Declining secondary employment or offers of consultancies or directorships, except as may beprovided for by your offer letter or expressly approved in advance in writing by the Company (see alsothe rules at Section 3.5 of this Handbook).2.2 FidelityFidelity in financial services embraces duties of loyalty, confidentiality and citizenship in relation to theaffairs of the Group and our customers. This means:• Promoting the good standing and name of the Company and defending it against unwarrantedcriticism.• Marketing by personal example, including normally conducting our banking and financial servicesneeds through the Company.• Ensuring that any undertakings given are within our personal capacity and fully honoured.• Safeguarding all the Company’s information and restricting access to any confidential or sensitivedocuments.

• Keeping our customers' business, financial and personal affairs confidential by not disclosinginformation to third parties without their express consent, except where required by law or establishedbanking practice.• Taking care over our communications - oral, written or electronic - to prevent others acquiringconfidential information.• Complying fully with the laws and regulations of all countries in which we do business and with thepublished codes of relevant institutions.• Not knowingly engaging in business which might in any way be associated with, or regarded assupportive of, illegal or criminal activities, construed as bribery or corruption or, which would becontrary to the national interest of the United Kingdom.2.3 Self-RespectSelf respect is enhanced by professionalism, good citizenship and conscientiousness. This means:• Maintaining your dignity and promoting that of fellow employees, by not bullying or victimisingcolleagues for any reason and by promoting equal opportunities within the Company.• Acquiring the necessary skills, knowledge and experience to conduct business dealings or tasks in aprofessional manner and keeping abreast of current developments.• Acting with the utmost courtesy at all times.• Giving due consideration not just to the immediate financial effects of decisions but also their widerimplications.• Avoiding practices which could make you vulnerable to financial difficulties or which could lead tomalpractice eg gambling (except for very modest stakes).• Seeking help and advice from colleagues where difficulties arise in matters of professional judgementor conduct and adopting an approach of openness and teamwork.2.4 Corporate Values (in relation to personal conduct)These include:• Not knowingly allowing the Company to place itself in a position where its duty to one customer orclient conflicts with its duty to another.• Ensuring that the provision of financial services (particularly where this may involve credit facilities) tosuppliers or potential suppliers of goods and services to the Company, is considered on a whollyobjective basis and not tied to any form of reciprocal agreement.• Observing the spirit and letter of regulatory requirements, recognising that the Financial ServicesAuthority exercises supervisory responsibility for the HSBC Group as a whole and not just over itsbanking subsidiaries registered in the United Kingdom.• Maintaining Company records and systems so that all transactions are recorded in an accurate andprompt fashion and not falsifying records or obscuring, omitting or misrepresenting facts in records orcommunications.• Reporting to the appropriate internal level of authority any behaviour which contravenes the law,regulatory requirements, or the spirit of this Code.2.5 Core Standards of BehaviourThe HSBC Group has integrity, trust and excellent customer service at the heart of its values. Applicationof these in all that we do builds our reputation, unites us, sets us apart from the competition and ultimatelymakes us even more successful.Active Listening• Listens carefully to customers and colleagues giving them undivided attention and asking thoughtfulquestions to confirm facts.• Is genuinely concerned about others and is ready to act in their best interests.

Understanding• Greeting customers, clients, suppliers and colleagues in a polite, friendly and personalised manner.• Demonstrating a pleasant, enthusiastic, helpful manner when dealing with customers, clients,suppliers, colleagues and other people whom we work with or who work in our premises.• Communicating relevant information clearly and accurately.• Treating all customers, clients, suppliers, colleagues and other people whom we work with or whowork in our premises, with dignity and respect, ensuring that each receives the very best service.• Handling all customer, client, supplier and colleague enquiries, instructions and complaints promptly,willingly, accurately and efficiently.Freedom to Deliver• Taking pride in providing excellent customer service and personal responsibility for getting things rightfirst time.• Positively challenging existing processes in order to improve the quality of service and remove thebarriers that impede us from deepening our relationship with customers and clients.• Adopting a 'can do' approach and taking appropriate action to meet the needs of customers, clients,suppliers and colleagues.Integrity• Acting in an open and honest way, recognising that personal conduct reflects on the Group.• Attending work and carrying out your duties regularly and punctually and being committed to the teameffort.• Actively promoting HSBC as a reputable organisation.• Maintaining appropriate standards of responsible behaviour, dress and appearance.Straightforward• Welcoming feedback and readily apologising when mistakes have been made.• Addressing all matters, particularly difficult issues, with frankness, facts and tact.• Ensuring that all commitments given are achievable and fully honoured.Forward Thinking• Developing skills and knowledge required to do your current job well and improve your ownperformance.• Being adaptable and maintaining a positive approach to change.• Thinking ahead and anticipating customers' and colleagues' needs.Teamwork• Sharing knowledge, best practice and experience to support colleagues in the achievement of theirgoals.• Leading by example, contributing to team morale.• Actively contributing to the overall team effort.• Treating all colleagues with dignity and respect.• Placing team goals before own individual goals, if appropriate.

3. Rules and RegulationsWhilst the Rules and Regulations do not form part of your contractual terms and conditions ofemployment, they do form part of the general standards of conduct which the Company requires allemployees to maintain. Failure to abide by any of the Rules and Regulations may result in disciplinaryaction being taken against you, which could include dismissal.These Rules and Regulations may be altered or modified at any time by notice to you or by circular.3.1 GeneralYou must not act at any time in any way which, in the opinion of the Company, might cause the Companyto be brought into disrepute.You must at all times act with the utmost integrity and honesty in all your personal and business dealings.You must report any known breaches of Rules or Regulations, including those by fellow employees, toyour line manager or another appropriate manager as soon as you become aware of them.3.2 Security and Fraud PreventionIn the interests of security, fraud prevention, your safety and customer service, the Company reserves theright to:• Issue security passes, which may include a photographic image of you.• Search any baggage carried by employees (including hand baggage and parcels of any description) orvehicles entering or leaving Company premises.• Carry out checks on your educational and professional background and undertake criminal recordand/or credit reference checks.• Provide information to fraud prevention databases that have been established for the purpose ofallowing employers to share data on their employment fraud cases. Should our investigations identifyfraud or the commission of any other criminal offence by you (on your part) when applying for, orduring the course of your employment with us, we will record the details of this on the relevant fraudprevention databases. We and other organisations may also access this information to prevent fraudand money laundering.• Where an employee has committed an act of dishonesty either in relation to Group funds or customeraccounts then the act should be reported to the appropriate authorities and support provided inrelation to any prosecution. As appropriate, refunds of any misappropriated monies should be made tothe customer. Notification should also be made to the Group’s insurers.• Carry out telephone and CCTV monitoring in the workplace.• Monitor the use of e-mail, the internet, voicemail and text messages sent to Company telephones(mobile or otherwise), which have either originated from or been received via Company equipment.The Company will issue appropriate notification should any further monitoring be necessary in additionto the above.In addition, in the interests of security and fraud prevention, the Company reserves the right to inspectbranch accounts and other facilities held by any employee.You should also be aware that any information or evidence gained from such monitoring may be admittedas evidence in disciplinary situations.3.3 CommunicationsYou are expected at all times to maintain the highest standards of professionalism and integrity in all thatyou do, including your communications with colleagues, customers, clients, suppliers and the public.These standards apply to communications that are verbal, written (for example, memo, letter, report) andelectronic (including, but not limited to fax, e-mail, mobile phone text messages, telephone, voicemail or

the internet). If sensitive or confidential information needs to be sent by email to external parties it shouldonly be transmitted using encryption because unencrypted data could be intercepted and used to commitfraud and/or to damage the reputation of the Group.3.4 Personal FinanceYou are expected at all times to conduct your personal finances in accordance with the Company's rulesand conditions under which financial facilities are granted to you.You must not borrow money by overdrawing your personal account without prior authority. If you are infinancial difficulty, you must consult Customer Credit Services or your account holding manager for adviceimmediately.The rules and conditions under which financial facilities are granted to you by the Company from anysource are set out in appropriate application forms and/or will be provided to you at the time the facilitiesare granted to you. All employee borrowing is subject to customer lending criteria.You must not borrow from, or lend money to, customers or other employees except in the course ofauthorised business.You must not gamble, except for very modest stakes, and must never put yourself in a situation whereyou are financially reliant upon the outcome of a bet or financial speculation.You must gain the prior agreement in writing of your General or Senior Manager if you wish to be apersonal guarantor for any loan.3.5 Commitments Outside the Company/Dual EmploymentYou must gain the prior agreement in writing of a Senior Manager if you wish to:• Take or continue with an additional job either inside or outside the Company.• Become or remain a director of a company.• Engage in any other business - this includes business activities undertaken by whatever medium,including business interests in internet web sites.• Act as an executor, or administrator, attorney or trustee (except for near relatives ie spouse, partner,mother, father, grandparent, brother, sister, child, grandchild).Permission will not be granted for you to take on any other role which could adversely affect your job withthe Company, for example where it would mean you are unable to take proper rest periods as required bythe Working Time Regulations 1998 or which would subject you to an actual or possible monetary liability.Further guidelines are provided in the Dual employment - commitments outside the Group section of theHR Procedures Manual.3.6 Giving and Receiving Gifts and BenefitsYou must not accept or give any gift (an item of monetary value), hospitality (lunches/dinners, attendanceat sporting or cultural events, weekend breaks, holidays or travel arrangements), or other personal benefit(bequests, favours, services, loans, fees, anything else of monetary value) from or to any third party(external product provider, professionals such as accountants and lawyers, non HSBC suppliers ofservices, customers) which is likely to influence (or which other people may think likely to influence) yourjudgement or conflict with your duties to any customer or member of the HSBC Group.In particular, you may not accept or give gifts, bequests or inducements (other than promotional itemswith a value under £25) from or to any person in relation to your work without approval from yourFunctional Head. Such approval will not be given if the item is likely to conflict with your duties, or if it has

a value in excess of £150. You must report any gift, bequest or other benefit received to your linemanager.Any entertainment or hospitality offered (including lunches, dinners, attendance at sporting or culturalevents) may only be accepted or offered if the level and nature of the entertainment is appropriate. Ifthere is any doubt about the level and nature of entertainment offered or provided, you must seek priorapproval from your Senior Manager.You should actively, but sensitively, discourage customers, clients or suppliers from offering personalbenefits of any kind (including all types of gifts, favours, services, loans or fees, or anything of monetaryvalue).3.7 Diversity3.7.1 The Central Role of DiversityDiversity is central to HSBC’s brand and we value the rich diversity, skills, abilities and creative potentialthat people from differing backgrounds and experiences bring to the workplace. Good practice in theimplementation of customer and employee diversity policies sets us apart from our competitors and iscrucial for business success. Every employee plays a vital role in providing quality service to all ourcustomers and helping to create an inclusive working environment, where everyone can realise their fullpotential.3.7.2 Your ObligationsA key aspect of creating a diverse workplace and client base is the non-toleration of any form ofdiscrimination in relation to sex, marital status, pregnancy, gender reassignment, race, colour, disability,sexual orientation, age, religion or other similar belief, ethnic or national origin.The Company will also not tolerate any form of harassment, victimisation or bullying of any kind.Discrimination, harassment, victimisation and bullying are extremely serious violations of your terms andconditions of employment. Any such behaviour is likely to lead to disciplinary action and may result inyour dismissal for gross misconduct.3.7.3 AssistanceFurther details are provided in the Diversity section of the HR Procedures Manual. In particular, if youbelieve you are the victim of any form of discrimination, harassment, victimisation or bullying you shouldfollow the guidance and advice set out in the Diversity section of the HR Procedures Manual, and youmay also want to seek help from your line manager or from Open Line, the Company’s confidential andfree advice and information service.For further details on Open Line, please visit the Open Line intranet site.3.8 Compliance with Financial Services Regulations and Rules3.8.1 Compliance RiskYou must be fully aware of your responsibility to comply with applicable laws, rules and codes and toabide by all published compliance regulations including the Company's procedures for personal dealing insecurities.In addition, managers of Band 5 and above have explicit responsibility (which is reflected in their roleprofile) to implement the Group Compliance Policy by containing any compliance risk in conjunction withthe relevant Compliance department. The term “compliance” embraces all relevant laws, rules and codeswith which the business has to comply.

3.8.2 Operational RiskAll employees must ensure that they keep themselves abreast of changes to operating procedures andpractices, advised legal and regulatory requirements and the impact of new technology as appropriate totheir specific roles.In addition managers must continually reassess the operational risks inherent in the business, takingaccount of changing economic or market conditions, legal and regulatory requirements, operatingprocedures and practices, management restructurings, and the impact of new technology. Onceidentified, operational risks must be recorded in the Group Operational Risk Database Online Network(GORDON) as described in the Operations FIM, and appropriate measures should be taken to minimisethe Company's exposure to themThis requirement is contained within managerial and staff role profiles and, if appropriate, should beconverted into a suitable performance objective for relevant individuals.All direct reports of the CEO and COO or equivalent, and, in turn, their direct reports must complete aformal takeover process when moving to a new role to ensure an orderly and documented transfer ofmanagement responsibility. Any breaches of internal or external rule/procedure/regulation/law identifiedduring the takeover process must be detailed in a report submitted to the appropriate level of functionalmanagement which outlines the issues and proposes an appropriate remediation plan.3.8.3 Operational Consumer ProtectionThe main piece of legislation in the UK which provides protection to consumers is the Financial Servicesand Markets Act 2000 (“FSMA”). The FSMA requires all firms in the UK undertaking “regulated activities”to be authorised by the Financial Services Authority (“FSA”) and some individuals to be individuallyregistered as an “Approved Person”. The FSA sets out detailed rules with which all authorised firms andindividuals must comply. These rules must be followed whenever a regulated activity is undertaken.Further information on regulated activities can be found in the HSBC Holdings plc UK ComplianceGuidelines (the “Compliance Manual”), which is available on the Group Compliance intranet (KnowledgeCentre).Procedures which reflect regulatory requirements are also incorporated in office procedures manuals andcirculars. Observance of the Group’s policies and procedures will ensure that the interests of customers,as well as the Group’s reputation, are protected and will minimise the risk of penalties being imposedupon a Group company and/or upon an employee, which can arise from non-compliance. In particular,employees must comply with the requirements of the Compliance Manual and the Data Protection andPrivacy Business Instruction Manual which can both be accessed through the HSBC Bank plc’s UKintranet (Procedures).As part of your job, you may be required to be registered as an Approved Person with the FSA by way ofa formal agreement. If so, this will require you not only to abide by the FSA’s principles and rules butadditionally to accept personal responsibility for certain actions under the FSMA. Significant breachesmay expose you to personal liability, but this risk will be mitigated by following HSBC Group policies andprocedures.3.8.4 Dealing Rules - UK Employee Dealing ProceduresPersonal dealing in securities by all employees is subject to specific procedures, which may be amendedfrom time to time, and which must be strictly observed at all times. If you are a new employee, a copy ofthe guidelines to employees will be made available to you when you commence employment, and youshould read them on receipt.If you wish to buy or sell securities (eg stocks and shares, but see the procedures for a full list of what isdeemed to be a security) you must observe the UK Employee Dealing Procedures. These set out

procedures and conditions to ensure that employees' dealings comply with the Group's policy, theFinancial Services Authority regulations and the Criminal Justice Act 1993. It is very important for you tounderstand the implications of these regulations.In particular, you should read carefully the restrictions which apply if you are in possession of insideinformation. Dealing when in possession of such information, passing such information to others orprocuring others to deal while in possession of such information are criminal offences under Part V of theCriminal Justice Act 1993. This is a complex piece of legislation and it is essential that the advice of yourline manager is sought before dealing if you have any doubt about the transaction.There are special rules for dealing in HSBC Group Securities which affect certain employees.A full copy of the UK Employee Dealing Procedures is contained in the “Compliance Manual”, which isavailable on the Group Compliance intranet (Knowledge Centre).Failure to observe the UK Employee Dealing Procedures may result in disciplinary action, includingdismissal, being taken against you. You may also be subject to criminal prosecution.3.8.5 Lending - Conflicts of InterestIf you are involved in recommending or approving any credit facility or counterparty limit for a customer inwhich you or any connected person have a significant investment, you must inform your line managerimmediately in writing. Your line manager will need to be satisfied that the investment does not and willnot influence approval of credit facilities or counterparty limits and keep a note of these details.A "connected person" is defined in the “Compliance Manual”, which is available on the Group Complianceintranet (Knowledge Centre).A "significant investment" is defined as:• Any investment in an unlisted company or partnership.• Any other investment with a market value of £15,000 or more.Failure to comply with any of these requirements is likely to lead to disciplinary action and may result inyour dismissal for gross misconduct.3.8.6 Money Laundering DeterrenceYou must abide by all published money laundering rules, regulations and procedures.'Money Laundering' is the name given to the process by which the identity of illegally obtained money ischanged so that it appears to have originated from a legitimate source. Banks and other financialinstitutions may be used unwittingly as intermediaries for the transfer or deposit of funds derived fromcriminal activity.Criminals and their associates use the financial system in order to hide the source and beneficialownership of money by making payments and transfers of funds from one account to another, purchasingmonetary instruments such as drafts and travellers cheques and using safe-deposit facilities to providestorage for bank notes. The process is also used in the financing of terrorism although the funds involvedmay not in themselves be the proceeds of a criminal act.The HSBC Group has developed and introduced a Money Laundering Deterrence Programme – GlobalPolicy and Principles (GPPs) that generally reflects the anti-money laundering legislation in the UK. Eachrelevant business operation has introduced the appropriate internal procedures to ensure compliance withthe GPPs and the local legislation where applicable. However, it should be noted that the GPPs areapplied on a Group wide basis and apply to all forms of criminal activity, irrespective of local legislation.

The following list is by no means comprehensive, but identifies some of the key aspects of whicheveryone dealing with customers and clients should be aware:• Care should be taken to verify the identity of all new clients (including in some situations those noncustomersfor whom business is occasionally undertaken) and the ownership of all accounts properlyestablished.• Be alert to unusual or large transactions which may give rise to suspicions.• If you become suspicious that funds held on an account or transactions undertaken are related tocriminal activity, you must report the matter to the Money Laundering Reporting Officer (“MLRO”) inaccordance with local reporting requirements. Failure to report suspicions or failure to report wherethere are reasonable grounds for suspicion may lead to action being taken against you under theCompany's procedure for gross misconduct.Within some jurisdictions (including the UK) local legislation imposes severe penalties on individuals(including possible imprisonment) on conviction of offences detailed under local law. All employees musttherefore be constantly alert to their responsibilities and the risks to which they are exposed. The existinganti-money laundering legislation in the UK places personal responsibilities on all employees andprovides that you are committing an offence if you:Know or suspect, or have reasonable grounds to know or suspect, that another person is engaged inmoney laundering and do not report your knowledge or suspicion.Reveal in any way to a person (customer, non-customer or employee) that they are the subject of a reportor an investigation.Further details are provided in the “Compliance Manual”, which is available on the Group Complianceintranet (Knowledge Centre) or can be obtained from the Money Laundering team on 799 17312(Internal) or 020 7991 7312 (External).3.9 Whistle-BlowingThe Public Interest Disclosure Act 1998 and the US Sarbanes-Oxley Act 2002 are designed to provideemployees, and other persons such as agency temps, with a procedure to disclose genuine concerns,which seem to involve unlawful conduct or financial malpractice, and to protect them from victimisationwhen making disclosures. This is why such disclosures are known as ‘protected disclosures’. Thedisclosure of wrongdoings within an organisation is commonly known as 'whistle-blowing'.One of the Company's key business values is to be a fair and objective employer and so it has developeda procedure, in line with the above Acts, to help you raise any concerns about wrongdoings at work.Under the Company’s procedure the following are protected disclosures:1. Breaches of legal and regulatory requirements by any Group company, including the committal ofa criminal offence, a miscarriage of justice or a failure to comply with a legal obligation.2. Failure to adopt policies consistent with the Group Standards Manual.3. Fraud or deliberate error in the preparation, evaluation, review or audit of any financial statement.4. Fraud or deliberate error in the recording and maintaining of financial records of any Groupcompany.5. Deficiencies in or non-compliance with any Group company’s internal accounting controls.6. Deviation from full and fair reporting of any Group company’s financial condition.7. Misrepresentation or false statement to or by a Group Executive Officer or Accountant regardinga matter contained in the financial reports or audit of any Group company.You can make a protected disclosure by reporting the matter to your line manager or Human Resources.However, any disclosures falling within categories 2-7 must, due to our legal obligations, be reported toGroup Compliance. If you feel unable to raise the matter with your line manager, or Human Resources,for whatever reason, you should call the Group Compliance telephone 'hotline' on 799 12155 (Internal) or020 7991 2155 (External). Alternatively, you may send an email to: compliancedisclosureline@hsbc.com

or make a protected disclosure in writing, to the Head of Group Compliance, HSBC Holdings plc, Level42, 8 Canada Square, London, E14 5HQ.However, if your concern relates to your personal position, rather than a concern about malpractice, it willnormally be more appropriate for you to use the Company’s Grievance Procedure, which is set out in theHR Procedure Manual.Full details of the Whistle-Blowing procedure, along with the HSBC Group’s general policy on disclosure,are contained in the HR Procedures Manual.3.10 Data Protection3.10.1 Personal Data and Sensitive DataThe type of personal data that we hold may include information relating to payroll processing, references,family and other contact details and records (including, for example, job applications, and when relevantand permitted, details of any grievance and disciplinary procedures) relating to your recruitment andcareer with us.We will only collect and process data in a fair and lawful manner. Sensitive data will only be processedwith your agreement, unless required to meet statutory obligations. The types of sensitive data we holdabout you may comprise of:(i) Information about your health, which would be used to ensure compliance:• With health and safety and occupational health obligations.• When considering any health issues that may affect your ability to work.• If you are disabled.• Should you require time off work or special arrangements to look after a family member or friend, wemay keep a record of such absences.• For administration and management of insurance, pension, sick pay and other similar benefits.(ii) Recording racial or ethnic origin or religious beliefs. This data is held to fulfil our statutory obligationsto ensure equality of opportunity at work.(iii) Information for security, fraud prevention and regulatory purposes. We may in the course of yourrecruitment and periodically during your career undertake appropriate security and credit referencechecks.In some instances we may be required by law to provide certain information to a third party, such as theHM Revenue & Customs, governmental or non-governmental regulatory bodies.Information may also be exchanged with other members of the HSBC Group for purposes connected withyour career, for payroll and administrative purposes, and for audit requirements. Information may also beprocessed on our behalf by members of the HSBC Group and/or third parties. However, whether or notsuch information is processed outside the European Economic Area (where there may be less stringentdata protection laws) it will be protected by a strict code of secrecy and security and will only be used inaccordance with our instructions. If your personal data is transferred or held overseas, we will ensureyour rights as an individual are protected.In order to give you information about products and services we provide together with products suppliedby selected third parties, we may use, analyse and assess information that is held about you. We maypass information to other members of the HSBC Group so that they may do the same, but your name andaddress will not be disclosed for marketing purposes unless you have given your consent.For security and administrative purposes we may monitor and/or record both external and internaltelephone calls. In the interests of security and your own personal safety we may also use CCTV

ecording equipment in and around our premises. Photographs and images are also taken and used forsecurity purposes, eg on security passes.We may monitor the use of e-mail, including attachments and internet facilities for both personal andbusiness purposes, together with text messages sent, using bank equipmentUnder Data Protection legislation, you can ask in writing for a copy of certain personal records wecurrently hold about you. Details are contained in the Data protection - use, retention and disclosure ofpersonal data > Information searches section of the HR Procedures Manual. A charge of £10 will bemade.Further information relating to the handling of personal information, including making a request for copiesof personal information, can be found in the Data Protection and Privacy Business Instruction Manual onthe intranet.3.10.2 Employees' ResponsibilitiesUnauthorised disclosure of third party personal data is a serious offence and can result in prosecution.Therefore you must ensure that you:• Do not disclose any individual’s personal data without authority.• Do not treat personal data carelessly.• Lock all data (including disks, tapes, paper printouts etc) away when not in use.• Do not disclose your computer password to any unauthorised person.• Only use personal data for the lawful purposes for which the Company has been registered.• Do not write personalised or derogatory comments about a customer, client, supplier, colleague or anyother third party.Guidelines on regulations and procedures regarding the handling of information relating to customers andemployees are set out in the Data Protection - use, retention and disclosure of personal data and DataProtection - regulations for staff files sections of the HR Procedures Manual.3.11 Use of Information TechnologyYou must strictly observe the Company's rules in relation to information technology. In particular youmust:• Conform with any security measures which are in place to protect the Company's data and/orcomputer equipment and access control.• Exercise proper control over passwords, Personal Identification Numbers or any other securitymechanisms, and ensure that any information technology resources which are in your control (such asaccess to a computer, laptop, mobile phone, blackberry) are kept secure and safe at all times.• Lock all devices when not in use.• Erase all information when it is no longer required to ensure it cannot be recovered maliciously. Thisincludes physically destroying any CD and DVD media that cannot be erased.• Observe any rules, regulations, codes or internal procedures which are in place with regard to the useof the Company’s equipment including mobile phones, two-way pagers, blackberrys and PDAs(whether for business or personal use).• Ensure that guests, visitors and contractors are aware of the Company’s policies regarding the use ofthe Company’s equipment.• Be vigilant and report any contravention of the Company’s Security Guidelines to senior managementor to IT Security on 790 27969 (internal) or 0114 28 27969 (external).You must not:• Install or use unauthorised software on Company equipment either on or off Company premises.• Use unauthorised computer equipment to process the Company's data.

• Make unauthorised copies of software.• Enter systems without proper authority.• Access or attempt to access any data maintained on any of the Group computer systems, which youare not specifically authorised to access.• Access customer or employee records without a specific business need or operational reason.• Effect changes or make transactions on your own account or any account with which you areassociated.• Take photographs or video images in any Company premises, using any kind of equipment (includingmobile phone cameras) without the prior permission of senior management or security management.• Connect (physically or by any type of wireless) any unauthorised device to the Company’s computersystems or networks. No personal data storage device is to be attached to the Company’s systemswithout prior management approval and without ensuring that the appropriate security controls for datastorage are applied. (A personal data storage device is defined as any non Company owned devicethat has the capability to have data transferred and stored on it).• Take photographs that infringe personal privacy or customer or client confidentiality (for example onspecial occasions, at award ceremonies etc), or that compromise the security of employees,customers, clients, premises and equipment.• Use mobile phones in areas such as computer rooms, network rooms and trading floors where theiruse may cause distraction or a breach of security or compliance regulations. Relevant businessspecific or local instructions should be followed.Digital recording devices such as floppy discs, CDs and DVDs should only be used to store Companyand/or Group information if there is no other alternative. Devices of this type are vulnerable tocompromise and can be easily read. You must consider carefully the risks of storing sensitive informationon mobile recording devices and the potential danger to the Company if the information is lost. As amatter of course, if documents are being physically transported, they should be password protected. If inany doubt, err on the side of caution and do not use these devices until you have spoken to your linemanager for advice.Mobile recording devices should never hold the only copy of information stored. Another copy mustalways exist on a Company owned computer to provide contingency.In all circumstances local management may restrict use of these devices further if it is deemedappropriate and in the interests of the security of the Company and/or Group’s information and theprotection of employees, customers and clients.Unauthorised software comprises any software that is not on the Group's IT list of approved software orwhich has not been procured via the Purchasing Department (or future equivalent) and includes anyunsolicited software, demonstration software that has not been previously checked by Group IT Securityand any software that is delivered in such a way that it may have been tampered with.You are required to act in accordance with the Company's policies and guidelines on the security ofinformation and the use of information technology at all times. Security Guidelines on the regulations andprocedures regarding information technology are encapsulated in the document entitled Group ITSecurity Standards which is available on the Group IT intranet under IT Security, Group IT SecurityAwareness.The policy explaining the appropriate use of Group e-mail systems and the internet, and also what isinappropriate use, is contained in the Internet, e-mail and company mobile phones section of the HRProcedures Manual, which is available on the GMO HR intranet (via Project Link). You should note thatthe Company may monitor the content of emails and other electronic messages sent from its property.The Company will also monitor internet use and content when using the internet.Failure to comply with any of these requirements and, in particular, the use of unauthorised software onGroup equipment is an extremely serious violation of your terms and conditions of employment. Any suchfailure is likely to lead to disciplinary action and may result in your dismissal for gross misconduct.

3.12 Health, Safety and FireThe Company attaches the greatest importance to the health, safety and welfare of its employees atwork. Every effort is made to provide safe working conditions and to prevent fire or other damage.However, no safety policy is likely to be successful unless it has the co-operation of all employees.Everyone should do everything possible to prevent injury to themselves or others.The Health and Safety at Work Act 1974 and subsequent regulations place the duty on every employee,while at work, to:• Take reasonable care for the health and safety of themselves and others.• Co-operate with the employer in meeting the duties and requirements of the relevant statutoryprovision.As an employee of the Company, you have a personal responsibility to take care of yourself and othersand to avoid placing yourself or others in a situation that is hazardous or a risk to health.You must also ensure that you are familiar with all Company emergency procedures, including actions totake on discovery of a fire, bomb or other hazard. If you are unsure about or unfamiliar with theCompany’s emergency procedures you must speak to your line manager. As your employer, theCompany has a duty to the health, safety and welfare of all employees.In addition, an incident may require you to exit your place of work at short notice or an incident may occurpreventing access to your place of work. In these circumstances you need to be aware of the number totelephone to receive updated information and to report your safety (Employees based in Headquarters:08000 322722; Employees based elsewhere: 08000 731 3575) and which web sites will provide you withinformation (http://www.hsbc.com/).These responsibilities, together with procedural arrangements, are detailed in the Health, Safety and Fire- Business Instruction Manual, which is available through HSBC Bank plc’s UK intranet underProcedures.The specific objectives of the Company's Health, Safety and Fire Policy are to:• Promote a healthy and safe working environment;• Ensure each employee accepts health and safety as a major part of their individual responsibilities;• Identify health, safety and fire hazards in advance, and control the risks;• Ensure all legal requirements are satisfied.A Central Safety Committee consisting of representatives of the Company meet at regular intervals todiscuss health, safety and fire issues, exchange information and resolve problems.Further details on Health and safety, including information on First aiders and specific areas of risk, suchas Upper limb disorder and Night workers are contained in the Health Section of the HR ProceduresManual.3.13 Circulars, Instructions and AuthorityKey communications about changes to procedures, rules, regulations and terms and conditions ofemployment will normally be detailed in an email or in a circular published on HSBC Bank plc’s UKintranet.You are required to read and observe all instructions applicable to you and all appropriate circulars issuedby the Company.You are required to ensure that you act at all times within the authority granted to you by the Company.

Employees with lending authority have specified limits set for their lending which are set out in a letter ofauthority given to them. Under no circumstances may you grant credit or loans outside the limits ofauthority which have been set for you.Employees with lending authority must not grant credit or loans to themselves, their immediate family,partners or friends, or to companies in which they, their immediate families, partners, or friends have aninterest, financial or otherwise.3.14 Dress and AppearanceWhether or not your job involves contact with the public, you are required to dress in a way that theCompany considers appropriate to the business situation. Account will be taken of religious and culturalnorms. Styles that could offend normally accepted standards will not be permitted.Dress and appearance requirements may be varied by local arrangement at your place of work. Anyparticular requirements will be brought to your attention during your employment.3.15 Alcohol and Drug MisuseAn employee who suspects they have a drug or alcohol dependency is actively encouraged to seek helpthrough the Company’s Occupational Health Services or Open Line, a free and confidential service whichprovides counselling and information to all Company employees. For further details on Open Line, pleasevisit the Open Line intranet site.In order to help the employee (and subject always to the employee’s permission), Occupational Healthwill usually need to liaise with the employee's line manager who will therefore need to be advised ingeneral terms as to the nature of the problem. Clinical details are not disclosed and remain confidentialunless the individual gives written permission to the contrary.Dependency is distinguished from cases where an employee might occasionally arrive at work under theinfluence of alcohol or drugs. Such cases will be dealt with under normal disciplinary procedures.Incapability at work caused by alcohol or drugs is treated as a very serious matter and may result in yourdismissal for gross misconduct.

4. Benefits and FacilitiesYou may be eligible to take advantage of certain benefits and facilities provided by the Company fromtime to time. Further information will be available at your place of work in respect of other benefits andfacilities which may be available to you locally.The benefits listed below are a summary only. Full details and/or further information on specific benefitscan be obtained from the HR Procedures Manual, which is available on HSBC Bank plc’s UK intranet.Please also visit the Best Place - to Bank for Employees intranet site.These benefits do not form part of your contract of employment. All benefits and facilities are subject tocertain rules on eligibility and operation, which may change from time to time.4.1 Beneficial Loans4.1.1 Personal LoansUnsecured personal loans at concessionary rates may be available in accordance with the limit and termswhich may be in force at the time. Please also visit the Best Place - to Bank for Employees intranet site.4.1.2 Season Ticket LoansInterest free season ticket loans, repayable via payroll deduction, may be available to you. Additionalinformation is available in the Season ticket loan scheme section of the HR Procedures Manual.4.2 Charities4.2.1 Give As You EarnThrough this scheme, run in association with the Charities Aid Foundation, you can, via payroll deduction,make tax free donations to charities of your choice. Your money can go either direct to nominatedcharities, or you may be able to hold an account with the foundation, enabling you to donate in a flexiblemanner. Further details are available in the Charity scheme - Give As You Earn (GAYE) section of the HRProcedures Manual.4.2.2 Pound for Pound SchemeThe Company will, subject to certain rules, match charitable funds raised through employee time givenand fund raising events to a certain limit, per person per event per annum. Details can be found in theCharity scheme - Pound for Pound (£ for £) section of the HR Procedures Manual.4.2.3 'Keep the Change!'‘Keep the Change!’ is a simple and regular way to donate the odd pennies from your net salary to sixnominated charities each month. For example, if you earn £900.17 then by signing up to ‘Keep theChange!’ you can donate the 17p to charity. If your salary varies each month then the pennies donatedmay also vary. The maximum you give each month is 99p.Distribution costs are covered by the earned interest and therefore 100% of the monies donated will bereceived by the nominated charities. The donations will be received by the charities within 30 days ofreceipt by the distribution company. Further details are available in the Charity scheme - Keep theChange! section of the HR Procedures Manual.4.3 HSBC Childcare SchemeThe HSBC Childcare Scheme is open to all UK-based employees with children up to the age of 16 years.It is run under a system known as ‘salary sacrifice’. This means that you agree to reduce your salary in

exchange for childcare payments. These childcare payments are not subject to income tax and NIdeductions, and there will be a saving to you on the amount you choose to reduce your basic salary by.The scheme consists of two elements that you can take advantage of.4.3.1 HSBC Designated NurseriesBenefits:• Flexibility in terms of selecting and securing a nursery from over 450 HSBC designated nurseries UKwide.• A discounted corporate rate in the HSBC designated nurseries.• 100% tax and NI exemption on the total fees paid via salary sacrifice.4.3.2 All Other Forms of ChildcareBenefits:• Flexibility, in that you can use childcare vouchers to pay for a wide range of registered or approvedchildcare including nursery care (in non HSBC designated nurseries), childminders, nannies/au pairs,out of school clubs and holiday playschemes.• Available to working parents (with children up to the age of 16 years).• Tax and NI exemption on up to £217 per month of fees paid via salary sacrifice.4.3.3 The HSBC Childcare Scheme at a GlanceHSBCdesignatednurseryIndependentnurseryChildminderNanny/au pairAfterschoolcareHolidayplayschemeRelativeYou can join the schemeand get discountednursery rates plus yourtotal nursery fees can betax and NI-free if paid viasalary sacrifice.You can save up to 33%of the fees (basic ratetax payers) or up to 41%of the fees (higher ratetax payers).You can join the scheme, providedthat your childcare provider isapproved or registered, and the first£243 per employee per monthspent on childcare via salarysacrifice will be tax and NI free.You can save up to £692 per year(basic rate tax payers) or up to£1195 per year (higher rate taxpayers).You are notable to join thescheme if arelativeprovides allyour childcare.Membership of the Scheme is subject to certain eligibility criteria and basic pay thresholds. For moreinformation, please refer to the Childcare provisions section of the HR Procedures Manual. Please alsovisit the http://kidsunlimitedhsbschildcare.co.uk website.4.4 Open LineTo help employees manage personal or work difficulties, the Company offers all UK-based employeesaccess to Open Line, a free and confidential counselling service. Open Line provides practical help andcounselling on personal issues, such as bereavement, depression and relationship problems. Help is alsoavailable with a wide range of work related difficulties, such as bullying and harassment, lack of

confidence, work stress and role problems. Open Line can also provide support when employees areexperiencing stress in connection with matters which are the subject of disciplinary or grievanceinvestigations or proceedings.Telephone support is available 24 hours a day, 7 days a week. To make an appointment to see or speakto a counsellor please call between 9.00am and 5.00pm Monday to Friday. Counselling appointments areavailable outside these times. The telephone number is 08457 666 999, and the textphone for deafemployees is 0845 585 4054.Please note that, if you work in an area where calls are routinely monitored (such as a Customer ServiceCentre) you should ensure you use a non-monitored phone or a private phone, to preserve yourconfidentiality.For further details on Open Line, please visit the Open Line intranet site.4.5 HSBC Group Sports and Social ClubsThe Group has two sports and social clubs for use by employees and their families. In London activitiesare centred in New Beckenham and in Sheffield at Dore.There is a wide range of sports and leisure facilities available at these centres as well as a rowing club atPutney, London and sailing centres country-wide. There is also a fully equipped gym and class studios,known as ‘The Fifth Dimension’ at the Company’s Headquarters.For information and an application form, call 7213 4366 (internal, London) or 020 8919 4366 (external,London); 790 28898 (internal, Sheffield) or 0114 252 8898 (external, Sheffield).4.6 Long Service AwardsLong service awards apply to all employees with ten or more years’ service with the Company orequivalent service after transfer from another HSBC Group Company. Further details are set out in theLong service awards section of the HR Procedures Manual.4.7 Private Medical PlanManagement grade employees may be eligible for membership of the HSBC Group Healthcare Plan. Thisprovides cover for yourself and your immediate family (including partner and dependant children up to theend of the scheme year in which they achieve the age of 21) during your employment. Details areautomatically made available shortly after you become a manager. The scheme operates on terms andconditions which are in force at the present time and the Company reserves the right at any time to varyor withdraw the scale or level of benefits in force.More information is set out in the Insurance - medical and healthcare section of the HR ProceduresManual.4.8 Medical ExaminationsYou may have a medical examination through one of the BUPA Health Screening Centres. Detailsincluding information on eligibility and frequency of screenings are set out in the Medical examinationssection of the HR Procedures Manual.4.9 Mortgage Subsidy SchemeOnly employees employed by the Company before 1 June 2001 may be eligible to participate in theHSBC Holdings Mortgage Subsidy Scheme.

The HSBC Bank plc mortgage subsidy scheme is available to all employees who have been with HSBCBank plc or Holdings for more than six months and have a customer rate mortgage on their principleresidence (Equity Release Loans and Buy to Let Mortgages are excluded). Please also visit the BestPlace - to Bank for Employees intranet site.More information is set out in the Mortgage Subsidy Scheme section of the HR Procedures Manual.4.10 Staff AccountsPreferential facilities, including rates of interest, may apply to staff accounts. Details are available fromyour branch and in the Staff accounts section of the HR Procedures Manual. Please also visit the BestPlace - to Bank for Employees intranet site.4.11 HSBC Corporate CardA HSBC Corporate Card must be used by all managers, and appropriate employees, who incur businessexpenses on a regular basis. Such employees will pay for appropriate business travel, accommodation,and entertainment items with an HSBC Corporate Card, where issued, and subsequently reclaim suchexpenses.The card is provided for business expenses only and must not be used for personal expenditure or tomake cash withdrawals other than for foreign currency required for incidental expenses during a businesstrip. Misuse of the Corporate Card may result in disciplinary action, which could result in dismissal.Details on the HSBC Corporate Card including information on eligibility and card limits are set out in theeExpenses Policy, which is available via Lotus Notes from the eExpenses database.

5. Your Career with the CompanySet out below are some of the main issues which may affect you during your employment, together withan outline of the Company’s policies and procedures in respect of each matter. Further information oneach issue, and many other issues which may be of interest or which may affect you during youremployment, are available in the HR Procedures Manual, which can be accessed via HSBC Bank plc’sUK intranet.This section does not form part of your contractual terms and conditions of employment.5.1 Role EvaluationThe evaluation process is based on an agreed role profile which is a generic description covering roleswhich are similar in content and skill requirement. A panel of evaluators meets to consider new roles androles where the responsibilities/accountabilities have significantly altered.5.2 Employee Learning and Development - Investing in Your FutureThe Company is committed to creating a learning organisation that promotes and supports individualdevelopment and is the envy of other global companies. We recognise that superior knowledge and skillsof our employees are vital if we are to deliver a first class service to our customers, continue to grow as abusiness and be better than our competitors. At the same time, we want the Company to be a great placeto work where employees have job satisfaction, grow with us and make a long-term commitment to staywith the Company.Whatever your personal learning and development goals are and regardless of your career aspirations inthe Group, we have a wide range of opportunities for career development. Opportunities include theweekly 'My Next Move' and 'Global Job Opportunities' where role vacancies are advertised on theintranet.Learning is most effective when it is enjoyable, made as accessible as possible, with you in control andconducted at your own pace. Our goal is to make learning and development something that everyone inthe Company is passionate about. We know that when it comes to learning, one size does not fit all andeveryone is different – we all have different levels of knowledge or experience and we all like to learn atdifferent speeds and in different ways.“My Learning” is a learning management system available on the GMO HR intranet (via Project Link). It isyour personal link to a wealth of learning opportunities. It is a single point of access for all learningactivities and information resources and a key part of the Company’s flexible learning approach. Itimproves the speed, quality and effectiveness of the learning process, providing greater opportunity for allemployees to take part in learning activities, regardless of current job role, future career aspirations orlocation.5.2.1 Identifying learning and development needsLearning is developing new knowledge and skills and building on and improving the skills you alreadyhave to enable you to gain more from your current role or to prepare for your next job with the Companyor HSBC Group. We want you to take control of your personal learning and development by identifyingyour development needs and preparing your own learning and development plan.There are several resources to help you prepare your personal learning and development plan includingthe Group Capabilities Framework. Links to these can easily be found on the HR and Learning pages onHSBC Bank plc’s UK intranet.The Group Capabilities Framework highlights the skills and actions that best support the Group’sManaging for Growth strategy. It describes the Company’s corporate character and translates this into the

qualities expected of all our employees, by defining the required skills, attitudes and behaviours. Pleasevisit the Career Development page of the “My Career” intranet site.5.2.2 Learning & DevelopmentThe Learning & Development team has learning and development professionals who are responsible fora wide range of learning activities, all of which are accessible through 'My Learning'. The team liaise withbusiness units to provide the best learning solutions throughout the Company and the HSBC Group. Yourlearning may be provided face to face at our premier Group Management Training College inHertfordshire, through personal coaching or with online, video and paper-based learning materials.A wealth of knowledge exists in the Company’s unique LEAP library which provides access to over 2,800resources with speedy delivery. Take a look at 'My Learning' at some of the vast array of resources thatwill suit your needs.5.2.3 Professional and Technical QualificationsIf you would like to study for a specific professional or technical qualification, the Company may be able toprovide assistance. Further information about the procedures involved can be found in the Professionaland postgraduate qualifications section of the HR Procedures Manual.5.3 HSBC European CouncilThe European Council provides an opportunity for elected employee representatives from all the GroupCompanies across the European Union to meet with Executive Management from the Group to discussissues of a pan-European nature.5.4 Maternity and other family related policies and proceduresEmployees who take maternity or adoption leave are encouraged to return to work with the Company,and during your leave the Company will keep in regular touch with you. A detailed 'Employee MaternityGuide' is available to explain your entitlement and obligations and the facilities to which you may beeligible. This guide can be found in the HRPM forms section of the HR Procedures Manual.Paternity leave opportunities apply when children are new born or under 18 and newly-matched or placedfor adoption. Details are set out in the Paternity rights, leave and pay section of the HR ProceduresManual.Full details on maternity and other family related policies and procedures can be found in the Familysection of the HR Procedures Manual.In order to help you return and continue your career, the Company has a number of initiatives that mayassist you. These include:• Childcare facilities to aid return to work (see section Section 4.3 of this Handbook).• A priority returners scheme, which gives preference for re-entry to the Company to those who applyprior to leaving and who are eligible for the scheme, if exercised within five years (see Priority returnscheme section of the HR Procedures Manual).• Emergency family leave provisions which recognise the needs of carers of a sick child or an elderly,disabled, or chronically sick relative or other close dependant and provide for up to five days' paidleave, in an emergency, in any one year. See Special leave arrangements section of the HRProcedures Manual.• A flexible working policy, which aims to increase flexible working and which exceeds statutoryrequirements. See Flexible working section of the HR Procedures Manual.The Company’s Childcare Scheme and Family Leave provisions are available to all employees withparental responsibility for children.

Further details on these and other family related policies and the procedures you should follow are set outin the HR Procedures Manual (Family section, Leavers, Flexible working, Childcare provisions).5.5 Special LeaveYou may, at the Company's discretion, be granted special paid leave for reasons such as public duties,Duke of Edinburgh's Award Scheme Adventure Training, Company sports activities, certain H.M. Forcesor Auxiliary Forces activities, or on compassionate grounds. Such leave will not normally exceed ten daysin any one calendar year.Special unpaid leave may also be granted in exceptional circumstances, at the Company's discretion.Application for such leave should be addressed, in the first instance, to your immediate line manager.Further details are set out in the Special leave arrangements section of the HR Procedures Manual.5.6 Support for Disabled EmployeesThe Company values the individual contribution of all employees, irrespective of any disability. Therecruitment, training, career development and promotion of all employees is based on the aptitudes andskills of the individuals. Consideration of disability issues is also integrated into the business and thereare a number of initiatives in place to support the Company’s commitment to disability.5.6.1 Reasonable AdjustmentsMost disabled people do not need special equipment or adaptations, but sometimes provision of thesecan help an employee to operate more effectively at work. The Company is committed to finding the rightsolutions to meet the diverse needs of all employees and will make reasonable adjustments to ensurethat everyone can compete on a level playing field.The Company will cover the costs of reasonable adjustments required, although practical advice/financialsupport from "Access to Work", run by the Government initiative ‘Jobcentre Plus’, may be sought on an asneeded basis. "Access to Work" provide a range of services, such as equipment and communicators, aswell as operating a fares to work scheme.5.6.2 Rehabilitation PolicyWhen an employee becomes disabled, or an existing disability worsens, every effort is made to retain theindividual in employment. The Rehabilitation Policy is designed to assist managers and employees,through employment assessment and consultation.Further information on the support available and the process to follow is set out in the Employees with adisability, illness or condition section of the HR Procedures Manual.