Britain's new FCA regulator probes IT failures at RBS

The Financial Conduct Authority (FCA) announced Tuesday it has launched an investigation into technology failures at the Royal Bank of Scotland (RBS) last year.

The Financial Conduct Authority (FCA) announced Tuesday it has launched an investigation into technology failures at the Royal Bank of Scotland (RBS) last year.

Britain's new financial watchdog said it has started an enforcement proceeding into the computer problems at the state-backed lender that left millions of customers unable to access their accounts in June and July of 2012.

"The FCA will reach its conclusions in due course and will decide whether or not enforcement action should follow that investigation," the regulator said in a statement.

RBS set aside £125m in August last year to compensate affected customers. It had around 17m customers at the time of the incident but never confirmed the number affected.

Bank of England (BoE) Governor Mervyn King told UK lawmakers last year that the Financial Services Authority (FSA) should look into the glitch.

The FCA and the Prudential Regulation Authority (PRA) took over from the FSA this month. The so-called new "twin peaks" regulation will cost £646.3m for 2013-14, up 15% from last year's bill for the FSA.

The BoE said the PRA will cost £214.2m on top of the £432.1m that the independent FCA has already proposed.

RD

Recommended

Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Why the world’s most important economic data release has unnerved markets
US Economy

Why the world’s most important economic data release has unnerved markets

The US added only 194,000 jobs in September, far shorter than the 500,000 that were expected. John Stepek explains why markets didn't react as they no…
11 Oct 2021