MP urges HSBC and Standard Chartered to release more than £1bn in frozen Hong Kong pensions

Labour MP Phil Brickell on Monday urged HSBC and Standard Chartered to unlock more than £1 billion in Mandatory Provident Fund (MPF) pensions frozen for Hong Kong exiles who have resettled in Britain, saying the money should be returned to the people who earned it.

Brickell, a member of the foreign affairs select committee, cited recent reporting and told Parliament the banks should 'do the right thing' and hand over the funds so they could be spent in local shops, support businesses or help children's futures.

The frozen savings are held in the MPF, the compulsory pension scheme to which most Hong Kong employees and employers contribute. HSBC and Standard Chartered act as trustees for MPF accounts and have said they cannot release the pensions because of a directive from Chinese authorities requiring proof that account holders are permitted to reside abroad before allowing early withdrawals.

In 2021 Beijing declared that British National Overseas (BNO) passports would no longer be recognised as valid travel documents or forms of identity. That move followed the UK offer of a BNO visa route allowing Hong Kongers to settle in Britain, and it is cited by banks as a reason they lack the documentation needed to verify permanent resettlement and process early withdrawals.

Human rights group Hong Kong Watch says more than 166,300 BNO holders have moved to the UK since the visa scheme was launched in 2021. Many migrants have cited concerns about national security legislation introduced in Hong Kong as a reason for leaving. Campaigners and MPs say Beijing's order to freeze funds has left thousands in acute financial difficulty and are urging both the banks and the UK government to seek a reversal of the directive.

HSBC and Standard Chartered have said they are constrained by the Chinese government's instruction and must adhere to identity and residency verification requirements before permitting withdrawals. Campaign groups argue that the directive has no legal basis and that the banks, as trustees, should take steps to release the savings or press for clarification from Chinese authorities.

Brickell's remarks came ahead of Business Secretary Peter Kyle's arrival in Beijing for trade talks, a trip that highlights the tension between commercial ties and human rights and consular issues affecting British residents with Hong Kong backgrounds. MPs and campaigners said they expected the UK government to raise the pensions issue in discussions with Chinese officials.

The dispute highlights the complex intersection of international finance, trustee duties and geopolitics. As trustees, HSBC and Standard Chartered have legal and regulatory obligations in multiple jurisdictions; bank statements have emphasised compliance with applicable rules and the need for definitive documentary proof before disbursing pension savings.

Parliamentary pressure adds to calls from advocacy groups and some MPs for the banks and government to find a practical solution that would allow long-term residents who have resettled in the UK to access MPF savings. Officials from the banks and the Department for Business and Trade did not immediately offer new public positions beyond existing statements that they were monitoring the situation and would raise concerns with the relevant authorities if appropriate.