Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Former TSB chief information officer fined £81,000 over IT meltdown in 2018

by April 14, 2023
April 14, 2023
Former TSB chief information officer fined £81,000 over IT meltdown in 2018

UK regulators have imposed an £81,000 fine on a former TSB information officer over the bank’s IT meltdown in 2018 that left millions of customers locked out of their accounts.

The Prudential Regulation Authority (PRA) said Carlos Abarca, who was TSB’s chief information officer at the time of the meltdown, “failed to take reasonable steps” to ensure that an outsourcing firm owned by TSB’s parent company was ready to carry out the IT migration of customers en masse.

The fine against Abarca comes months after the bank itself was fined £48m in December for “widespread and serious” failings related to the debacle, which arose during its separation from its former parent company, Lloyds Banking Group.

Abarca is the only TSB executive so far to be held personally accountable by regulators for the IT migration failure.

The Bank of England declined to comment when asked whether any investigations into other bosses were taking place. It could leave the door open for further fines against directors and executives who were working at TSB at the time of the meltdown.

Paul Pester was forced to resign as TSB’s chief executive within months of the incident, after intense criticism from regulators and MPs.

The fine for Abarca is one of the few issued under the UK regulatory senior managers’ regime, which aims to hold bosses personally accountable when things go wrong.

Abarca had been responsible for making sure TSB was following the PRA’s outsourcing rules, and had been managing the bank’s relationship with its main third-party supplier for its IT migration programme.

The regulator said Abarca gave assurances to the board, telling them the supplier was ready for the migration in early 2018, but did this before he had received adequate assurances from the supplier itself. It resulted in chaos for millions of customers, who were locked out of their accounts for weeks after the incident began in April 2018, with some still facing issues in December that year.

Abarca left TSB a year later, in December 2019, before joining TSB’s Spanish parent company, Sabadell, as its chief technology officer. He stepped down from Sabadell earlier this year.

“Senior managers have an essential role to play in ensuring that firms manage and supervise outsourcing effectively,” said the PRA’s chief executive, Sam Woods. “In this case, the PRA has fined Abarca because his management of a key outsourcing relationship fell below the standard we expect.”

The PRA reduced Abarca’s fine by 30% after he agreed to settle the matter. The fine would have otherwise been £116,600.

Read more:
Former TSB chief information officer fined £81,000 over IT meltdown in 2018

0
FacebookTwitterGoogle +Pinterest
previous post
Unemployment must be higher to keep a lid on inflation, Bank of England’s Huw Pill claims
next post
CBI is no longer relevant in its current form, says former Barclays’ director Baroness Wheatcroft

You may also like

Mind Meets Market: 7 Surprising Parallels Between Psychology...

April 6, 2024

Getting To Know You: Jordan Fantaay, Founder, Pumpt

August 22, 2023

YouTube is killing ‘Stories’ a popular feature next...

May 26, 2023

Navigating Success: The Vital Role of Business Market...

September 9, 2023

Decision on bringing forward UK pension age rise...

March 31, 2023

Looking ahead to 2025: Increased costs for employers ...

January 15, 2025

Alternatives To Driving: Tips for Making It Home...

December 29, 2023

UK’s financial sector faces new wave of brute...

September 15, 2022

Number of young entrepreneurs selling their businesses increases...

December 18, 2023

UK job vacancies fall at fastest pace since...

December 9, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rescissions: A Small but Welcome Step Toward Spending Discipline

      June 5, 2025
    • DAVID MARCUS: Why Navy ships should not be named for gay rights icons

      June 5, 2025
    • GREGG JARRETT: Biden, the ‘marionette president; and the case of the runaway autopen

      June 5, 2025
    • Trump Practically Bans Travel and Immigration from 12 Countries with Flimsy Security Justifications

      June 5, 2025
    • ‘He’s not a big factor’: Trump’s Senate allies dismiss Elon Musk’s calls to ‘kill the bill’

      June 5, 2025
    • Fears grow that Tata Steel could be excluded from Starmer-Trump trade deal

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,523)
    • Stocks (3,127)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved