March 13 Webinar Recording: Implications of the Acquisition of Silicon Valley Bank UK Limited UK by HSBC

On 13 March 2023, in a transaction facilitated by the Bank of England and HM Treasury, Silicon Valley Bank UK Limited (SVB UK) was sold to the largest bank in Europe, HSBC, securing the deposits of more than 3,000 customers worth £6.7 billion. In a joint statement, the Bank of England, the Prudential Regulation Authority, HM Treasury and the Financial Conduct Authority announced that:

• All depositors’ money with SVB UK is safe and secure as a result of this transaction.
• SVB UK’s business will continue to be operated normally by SVB UK.
• All services will continue to operate as normal and customers should not notice any changes.
• Customers can continue to contact SVB UK through the usual channels and borrowers should make any loan repayments to SVB UK as normal.
• SVB UK staff remain employed by SVB UK, and SVB UK continues to be a PRA/FCA authorised bank.

At 12pm GMT on 13 March, our London team hosted a conversation for an audience both in Europe and the UK, to discuss the implications of the acquisition and the steps taken by the Bank of England. Partners from our banking and finance, bank insolvency, venture debt and employment teams, shared perspectives and answered questions on the following topics:

• Monies on deposit with SVB UK
• Debt facilities with SVB UK
• UK employment issues: payroll obligations
• Effect on FinTech companies
• Directors’ duties

This is a general presentation about rapidly changing issues and is intended for informational purposes only. It is not intended to provide legal advice. Given the exceptionally dynamic nature of the situation, we encourage you to reach out to your Orrick client team. We will provide refreshed guidance and additional information as developments unfold and more information becomes available.