UK regulators have imposed an £81,000 tremendous on a former TSB data officer over the financial institution’s IT meltdown in 2018 that left hundreds of thousands of shoppers locked out of their accounts.
The Prudential Regulation Authority (PRA) mentioned Carlos Abarca, who was TSB’s chief data officer on the time of the meltdown, “didn’t take affordable steps” to make sure that an outsourcing agency owned by TSB’s father or mother firm was prepared to hold out the IT migration of shoppers en masse.
The tremendous towards 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 father or mother firm, Lloyds Banking Group.
Abarca is the one TSB govt to this point 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 had been happening. It may go away the door open for additional fines towards administrators and executives who had been working at TSB on the time of the meltdown.
Paul Pester was pressured to resign as TSB’s chief govt inside months of the incident, after intense criticism from regulators and MPs.
The tremendous for Abarca is without doubt one of the few issued underneath the UK regulatory senior managers’ regime, which goals to carry bosses personally accountable when issues go fallacious.
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 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 acquired satisfactory assurances from the provider itself. It resulted in chaos for hundreds of thousands of shoppers, who had been locked out of their accounts for weeks after the incident started in April 2018, with some nonetheless going through points in December that yr.
Abarca left TSB a yr later, in December 2019, earlier than becoming a member of TSB’s Spanish father or mother firm, Sabadell, as its chief know-how officer. He stepped down from Sabadell earlier this yr.
“Senior managers have a necessary position to play in guaranteeing that corporations handle and supervise outsourcing successfully,” mentioned the PRA’s chief govt, Sam Woods. “On this case, the PRA has fined Abarca as a result of his administration of a key outsourcing relationship fell under the usual we count on.”
The PRA decreased Abarca’s tremendous by 30% after he agreed to settle the matter. The tremendous would have in any other case been £116,600.