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

UK regulators have imposed an £81,000 wonderful on a former TSB info officer over the financial institution’s IT meltdown in 2018 that left tens of millions of shoppers locked out of their accounts.

The Prudential Regulation Authority (PRA) mentioned Carlos Abarca, who was TSB’s chief info officer on the time of the meltdown, “didn’t take affordable steps” to make sure that an outsourcing agency owned by TSB’s mum or dad firm was prepared to hold out the IT migration of shoppers en masse.

The wonderful in opposition to Abarca comes months after the financial institution itself was fined £48m in December for “widespread and critical” failings associated to the debacle, which arose throughout its separation from its former mum or dad firm, Lloyds Banking Group.

Abarca is the one TSB government thus far to be held personally accountable by regulators for the IT migration failure.

The Financial institution of England declined to remark when requested whether or not any investigations into different bosses have been happening. It may go away the door open for additional fines in opposition to administrators and executives who have been working at TSB on the time of the meltdown.

Paul Pester was compelled to resign as TSB’s chief government inside months of the incident, after intense criticism from regulators and MPs.

The wonderful for Abarca is likely one of the few issued below the UK regulatory senior managers’ regime, which goals to carry bosses personally accountable when issues go unsuitable.

Abarca had been answerable for ensuring TSB was following the PRA’s outsourcing guidelines, and had been managing the financial institution’s relationship with its most important third-party provider for its IT migration programme.

The regulator mentioned Abarca gave assurances to the board, telling them the provider was prepared for the migration in early 2018, however did this earlier than he had obtained satisfactory assurances from the provider itself. It resulted in chaos for tens of millions of shoppers, who have been locked out of their accounts for weeks after the incident started in April 2018, with some nonetheless dealing with points in December that yr.

Abarca left TSB a yr later, in December 2019, earlier than becoming a member of TSB’s Spanish mum or dad firm, Sabadell, as its chief expertise officer. He stepped down from Sabadell earlier this yr.

“Senior managers have a necessary function to play in guaranteeing that companies handle and supervise outsourcing successfully,” mentioned the PRA’s chief government, Sam Woods. “On this case, the PRA has fined Abarca as a result of his administration of a key outsourcing relationship fell beneath the usual we count on.”

The PRA decreased Abarca’s wonderful by 30% after he agreed to settle the matter. The wonderful would have in any other case been £116,600.

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