FCA to investigate TSB over IT problems

The Financial Conduct Authority (FCA) has announced it will investigate TSB over its IT problems.

The regulator will launch an investigation over the bank’s failure to be open and transparent with customers when an IT upgrade went wrong, locking as many as 1.9 million customers out of their accounts.

In a letter to the Commons Treasury committee Andrew Bailey, the FCA’s chief executive, said  “The FCA has been dissatisfied with TSB’s communications with its customers and we have had concerns that TSB was not being open and transparent about the issues experienced. The current communications were perceived as poor, and could reduce trust in TSB and in the banking sector as a whole.”

Paul Pester TSB’s Chief Executive Officer is preparing to make a second appearance in front of the Treasury committee on Wednesday.

Bailey continued “We do not normally make this information public, but given the level of public interest, I want to be clear that we will be conducting this work.” He said Pester and the TSB board were accountable for the decision to press ahead with the systems upgrade.”