According to Business First of Buffalo, the decision to close the unit was disclosed in an April 18 letter which also stated that ADP Retirement Services had been tapped as a replacement provider for customers of HSBC’s Retirement Financial Services unit. HSBC said shuttering the Retirement Financial Services unit was a “strategic decision.”
In the letter, the bank said that it has an agreement to assist ADP and would be compensated for its efforts if a customer accepts the transition to the new service provider.
HSBC customers have until December 31 to find a new 401(k) service provider.