TSB fined £48.65m for operational resilience failings

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have fined TSB Bank plc (“TSB”) a total of £48,650,000 for operational risk management and governance failures, including management of outsourcing risks, relating to the bank’s IT upgrade programme. Technical failures in TSB’s IT system ultimately resulted in customers being unable to access banking services.

Although TSB were embarking on an enormous IT migration, this gap analysis brings out a wealth of self assessment question in relation to the management of all types of change. As so often is the case, the root of the issues comes down to governance practices.

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