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

80% of Irish businesses believe career progression opportunities...

May 30, 2023

What to Look for in a Top PHP...

May 15, 2024

CCI Kenya on the benefits of outsourcing administration...

June 27, 2023

Apple sales in biggest fall since 2019

February 3, 2023

The Importance of Learning Business Ethics

September 1, 2022

Business energy bill support to be reduced after...

January 10, 2023

A Comprehensive Guide to Crafting a Winning Request...

February 14, 2025

Parcel firms still responsible for dodgy deliveries according...

November 18, 2022

How Machine Learning Enhances Fraud Detection in Online...

December 19, 2024

New Brexit trading rules could take more than...

March 7, 2023

    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

    • The Best Five Sectors, #22

      June 9, 2025
    • Half of Brits would trust AI for legal advice, survey finds – but experts urge caution

      June 9, 2025
    • Business leaders paralysed by risk warn BDO as caution stifles growth

      June 9, 2025
    • Starmer pledges £1bn investment to supercharge UK tech and AI infrastructure

      June 9, 2025
    • 5 terrifying flashpoints that could ignite global war

      June 9, 2025
    • HMRC inheritance tax investigations surge 37% as treasury seeks to plug revenue gap

      June 9, 2025

    Categories

    • Business (8,161)
    • Investing (2,019)
    • Politics (15,572)
    • Stocks (3,137)
    • 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