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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
How to find lost pensions, savings or investmentsLosing track of money is easy to do when moving house or changing jobs so if you’ve lost touch with your cash, we outline some simple steps to find lost pensions, investments, savings accounts and Premium Bonds
-
Frasers Group 'is a rare retail gem in a battered sector'Opinion Frasers Group is shunned for a reason, but brave investors should buy in now, says Jamie Ward
