You are here: Home - Saving & Banking - News -

FCA launches investigation into TSB meltdown

Written by:
The Financial Conduct Authority (FCA) has launched an investigation into TSB following its IT meltdown last month that left customers unable to access their accounts for up to two weeks.

In a letter to the Commons Treasury Committee, Andrew Bailey, the chief executive of the regulator, confirmed that a formal investigation is being conducted alongside the Prudential Regulation Authority (PRA).

Bailey noted that this information is not normally made public but “given the level of public interest, I want to be clear that we will be conducting this work”.

In the letter, Bailey delivered a number of criticisms of Paul Pester, the TSB chief executive, pointing out that the regulator has been “dissatisfied with TSB’s communications” with concerns that the bank “was not being open and transparent about the issues experienced”.

Bailey added: “The current communications were perceived as poor, and could reduce trust in TSB and in the banking sector as a whole.”

Nicky Morgan MP, chair of the Treasury Committee, noted that the FCA does not make such stinging criticisms lightly.

She continued: “I am deeply concerned by TSB’s poor communications about the scale and nature of the problems it has faced; by its response to customer fraud; and by the quality and accuracy of the oral and written evidence provided by Dr Pester to the Committee.”

Pester and other TSB board members, as well as the FCA, are due to appear before the committee today.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
More people saving in workplace pension but amounts at record lows

Nearly 10 million workers are saving for their retirement through auto-enrolment, but the average amount going into pension pots stands...