Investing and retiring

• What is a financial review from HSBC Securities (USA) Inc. ("HSBC Securities")?
• What does HSBC Securities provide?
• I understand there may be other fees associated with an investment account – is there any way I can avoid some of these fees?
  
• Can I write checks from my brokerage account?
• Is there a fee to open an account?
• Can I have online access to my brokerage account?
• Is my account insured and by how much?
• Why should I choose HSBC Securities as my broker-dealer?
• Do you offer mobile trading applications?
• What types of assets can I transfer into an HSBC Securities Brokerage account?
• Can I household all of my brokerage accounts into one statement?
• What happens if my Wealth Relationship Manager leaves?
• What types of accounts does HSBC Securities offer?
• Can I get advice on my retirement account?
• What types of products does HSBC Insurance Agency (USA) Inc. offer?

Investment, annuities, and variable life insurance products are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. In California, HSI conducts insurance business as HSBC Securities Insurance Services. License #: OE67746. HSI is an affiliate of HSBC Bank USA, N.A. Whole life, universal life, term life, and other types of insurance are offered by HSBC Insurance Agency (USA) Inc., a wholly owned subsidiary of HSBC Bank USA, N.A. Products and services may vary by state and are not available in all states. California license #: OD36843.

Investments, Annuity and Insurance Products: Are not a deposit or other obligation of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency; Not guaranteed by the bank or any of its affiliates; and subject to investment risk, including possible loss of principal invested.

All decisions regarding the tax implications of your investment(s) should be made in consultation with your independent tax advisor.

Research backgrounds of brokers and firms for free by visiting FINRA's BrokerCheck website.

Environmental, Social & Governance (“ESG”) and Sustainable Investing (“SI”)

HSBC Securities (USA) Inc. (“HSI”) does not provide recommendations or advice on any products based on ESG or SI considerations except in certain discretionary solutions or based on HSBC Group’s* policies. Customers can purchase ESG/SI related products on our platform on a self-directed basis. For our general ESG/SI disclosure, click Disclosures- HSBC. Information about HSBC Group’s approach to Sustainability can be found at Our climate strategy | HSBC Holdings plc.

*HSBC Group refers to HSBC’s global affiliates.

United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their U.S. and non-U.S. accounts including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts ("FBAR")). U.S. persons should consult a tax adviser for more information.

1 Asset allocation is a method of diversification that positions assets among major investment categories. This tool may be used in an effort to manage risk and enhance returns. However, it does not guarantee a profit or protect against a loss. It also cannot eliminate the risk of fluctuating prices and uncertain returns.

2 Fixed income products are subject generally to interest rate, credit, liquidity and market risks, to varying degrees.

3 Investments in variable products will fluctuate and values upon redemption may be less than the original amount invested. Variable annuities are designed to be long-term investments and frequently involve substantial charges such as administrative fees, annual contract fees, mortality & risk expense charges and surrender charges. All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. When investing in tax-deferred annuities additional risks apply and such products may not be suitable for or in the best interest of all investors. Early withdrawals may impact annuity cash values and death benefits. Early surrender charges may also apply. An additional 10% IRS penalty may apply to withdrawals prior to age 59 ½. If you are investing in a variable annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a variable annuity. Under these circumstances, you should only consider buying a variable annuity if it makes sense because of the annuity's other features, such as lifetime income payments and death benefit protection. Features that provide lifetime income are optional and can be purchased at an additional cost. For more complete information, contact your Wealth Relationship Manager to obtain a current prospectus. Please read the prospectus carefully before investing or sending money.

4 To qualify for an HSBC Premier relationship, you need to open an HSBC Premier checking account and meet one of the following requirements. A monthly maintenance fee⁵ of $50 will be incurred if at least one of these requirements is not maintained. Refer to your ‘HSBC Premier Terms and Charges Disclosure’ for full details.

• Balances of $100,000 in combined U.S. consumer and qualifying commercial U.S. Dollar deposit and investment⁶ accounts; OR
• Monthly recurring direct deposits⁷ totaling at least $5,000 from a third party to an HSBC Premier checking account(s); OR
• Any HSBC U.S. residential mortgage loan serviced by HSBC. Home Equity products, loans that are in foreclosure or bankruptcy, and loans for which servicing rights have been transferred are not included
• Consumers who maintain Private Bank status⁸

5 You will not be charged a Monthly Maintenance Fee for the calendar month in which you open your account and the following 3 calendar months (together, the “Waiver Period”), whether you meet the qualifying criteria or not. If immediately after the “Waiver Period”, you have not met one of the HSBC Premier qualification criteria and your HSBC Premier checking account is charged 3 consecutive Monthly Maintenance Fees, your account will be closed. In addition, any other checking, savings, credit card and Global Money Accounts that you own will be closed, unless you (or a joint account holder on those accounts) hold a different HSBC Premier checking account.

6 Investment and annuity products are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. HSI is an affiliate of HSBC Bank USA, N.A.

7 Qualifying direct deposits are electronic deposits of regular periodic payments (such as salary, pension, Social Security, or other regular monthly income) deposited through the Automated Clearing House (ACH) network to this account by your employer or an outside agency (please check with your employer or outside agency to determine if they use the ACH network). Direct deposits that do not qualify include but are not limited to transfers from one account to another, mobile deposits, or deposits made at a Wealth Center or ATM.

8 To become an HSBC Private Bank customer, you must be invited and reviewed on an individual basis. See your Relationship Manager for details.

Managed Accounts

HSBC Securities (USA) Inc. is the sponsor of the HSBC Spectrum program. HSBC Securities (USA) Inc. is a registered investment adviser that serves as the Investment Adviser for the HSBC Spectrum program. HSBC Global Asset Management (USA) Inc. provides administrative and other services to HSBC Securities (USA) Inc. in relation to the Spectrum Program. HSBC Global Asset Management (USA) Inc. and certain other sub-advisers receive a fee for their mutual fund investment services separate from the investment management fee charged for the Spectrum program. HSBC Global Asset Management (USA) Inc. also serves as the adviser and administrator of the HSBC Funds, which may be among the underlying investments in the Spectrum program. Certain HSBC Funds also have sub-advisers, not always affiliated with HSBC Global Asset Management (USA) Inc., that receive fees for providing various services to the funds. Mutual funds outside of the HSBC Fund family are also offered as options in the Spectrum program and may be advised by investment managers affiliated or unaffiliated with HSBC Securities (USA) Inc., who also receive a fee for their investment services. Foreside Distribution Services, L.P., member FINRA, is the distributor of the HSBC Funds and is not affiliated with the Adviser. HSBC Securities (USA) Inc., member NYSE, FINRA and SIPC is a sub-distributor of the HSBC Funds.

529 Plans

Tax treatment of 529 Plans varies from state to state and can be a major factor in deciding which plan to select. Broker-sold plans often contain sales loads and higher fees and expenses than direct-sold plans.  If your state offers a 529 plan you may want to consider what, if any, potential state income tax or other benefits it offers, before investing.  State tax or other benefits should be one of many factors to be considered prior to making an investment decision.  The prospectus, which contains this and other information, can be obtained by calling your HSBC Securities (USA) Inc. Financial Advisor.  Read it carefully before you invest.  For tax advice, consult your tax professional.

Structured Products:

Structured Certificates of Deposit are provided by Registered Representatives of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC.  Structured CD Products are:  Bank deposits; obligations of the issuing bank; FDIC insured within applicable limits; not a liquid investment; and are designed to be held to maturity.  Structured CDs are subject to investment risk and any early repayment could result in a loss of principal investment.

Structured Notes are provided by Registered Representatives of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC, a registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC Holdings plc. Investing in Structured Notes may result in a loss.  The return on the notes is linked to the performance of the underlying asset, which may be negative, and involves risks specific to the relevant underlying asset.  Structured notes are not a liquid investment and are designed to be held to maturity.

Registered Notes may be suitable for or in the best interest of investors who are willing to forego dividends or other distributions paid to holders of stocks comprising the relevant Reference Asset, or the Reference Asset itself, as applicable, do not seek current income from their investment, do not seek an investment for which there is an active secondary market, are willing to hold the securities to maturity and are comfortable with the creditworthiness of HSBC, as issuer of the securities.

Fixed Annuity:

Fixed annuities are designed to be long-term investments.  All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. When investing in tax-deferred annuities additional risks apply and such products may not be suitable for or in the best interest of all investors. Early withdrawals may impact annuity cash values and death benefits. Early surrender charges may also apply. An additional 10% IRS penalty may apply to withdrawals prior to age 59 ½. If you are investing in a fixed annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a fixed annuity. Under these circumstances, you should only consider buying a fixed annuity if it makes sense because of the annuity's other features, such as lifetime income payments and death benefit protection.  Guarantees of a fixed rate of return are based on the claims paying ability of the issuing insurer.