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ARTICLE · 06 JANUARY 2023

UK Regulators Fine Leading Bank £48m For Operational Failings

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The fine would have been £69,500,000 were it not for a 30% discount for early settlement.

United KingdomFinance and Banking
Alix Prentice
Alix Prentice
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The UK's Financial Conduct Authority ("FCA") and Prudential Regulation Authority ("PRA") have together fined a leading bank a total of £48,650,000 for IT failures that left customers unable to access their accounts. The fine would have been £69,500,000 were it not for a 30% discount for early settlement.

In 2018, the bank undertook a single migration of its entire system to a newly-built platform − the failure of which left personal and business banking customers unable to access their accounts. Investigations by the PRC (responsible for the prudential regulation of the bank) and FCA (responsible for conduct of business regulation) found significant operational risk management and governance failures directly led to significant disruption to business as a result of failures to organize and control this significant outsourcing project. Both regulators pointed to the crucial role of prudent management and governance in ensuring safety and soundness and identified

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