HSBC Private Bank is renouncing its Jersey private banking licence, simultaneously transferring its private banking and wealth management operations to Guernsey in mid-2013, WealthBriefing can confirm.

While the firm focuses on trustee business in Jersey, private banking clients will be able to maintain accounts in Guernsey.

From a business perspective, a spokesperson said it is “much more simple and cost-effective to work under one licence rather than the current two for private banking in the Channel Islands.”

“We believe that by simplifying our operating model for private banking in the Channel Islands, we will be able to further improve our level of service to clients and improve the overall efficiency of our business,” they added. 

It is understood that chief executive Stuart Gulliver announced the changes last year as part of a group-wide “organisational effectiveness” programme.