The bank is supposed to set up a new sales model by January 2013.
HSBC Bank, the biggest mutual fund distributor has reportedly suspended mutual fund and insurance distribution for two months. According to an industry source, the London headquarters of HSBC bank has carried out a culture audit of the Indian retail and wealth management practices and found instances of mis-selling. Hence, it has ordered a suspension of sales and has asked the bank to modify the current sales structure.
“The bank is going slow since they are moving to a completely new system of sales incentive”, shared a AMC official on conditions of anonymity. The bank is planning to re-launch a new sales model by January 2013.
However, the Bank said, “We remain committed to growing HSBC’s retail banking and wealth management business in India by building long term customer relationships.We have not stopped or suspended any of our offerings and we continue to provide a range of insurance and investment solutions, including a select range of mutual funds/ insurance products, which we believe are most suitable to our customers' needs and risk profiles.”
