Aug 3 (Reuters) - HSBC Holdings Plc is urgingBritain to delay its deadline for new rules forcing lenders toseparate routine retail operations from riskier investmentbanking activities, until the outcome of an industrywide probe,Sky News reported on Sunday citing sources.
HSBC Chairman Douglas Flint has written a letter to UKChancellor George Osborne and Bank of England Governor MarkCarney requesting a delay to the 2019 timetable for banks toring-fence their business, Sky quoted sources familiar with theletter's content as saying. (http://bit.ly/1o3jfH9)
UK lawmakers in December gave their final approval toreforms aimed at tackling structural failings at banks, thatcame to light following the 2007/8 financial crisis and aseries of mis-selling and rate-fixing scandals.
The main feature of the bill was a rule to force banks toseparate their retail and investment activities.
Following the government's decision, Britain's competitionwatchdog in July said it would most likely launch an 18-monthlong in-depth investigation into bank services for smallbusiness customers and personal accounts later this year becauseof a lack of competition in the industry.
Sky said HSBC was concerned that the UK's Competition andMarkets Authority (CMA) could call for structural reforms,including a disposal of operations, on which it is alreadyspending significant sums in preparation for the introduction ofring-fencing rules.
CMA, which has the power to order a break up of banksconsidered too dominant, will decide in autumn whether to launchthe full investigation.
HSBC could not immediately be reached for a comment outsideof regular business hours in the UK.
Prudential Regulation Authority Chief Executive AndrewBailey, and Andrew Tyrie, chairman of the Treasury SelectCommittee and Parliamentary Commission on Banking Standards(PCBS), had also received Flint's letter, Sky said. (Reporting by Esha Vaish in Bangalore)
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