RBS Investigated By New Watchdog Over IT Woes

Written By Unknown on Rabu, 10 April 2013 | 12.06

The newly-formed Financial Conduct Authority has started an investigation into the Royal Bank of Scotland group's computer failure last year.

The FCA, which has recently replaced the Financial Services Authority as the City watchdog, launched the "enforcement" following the group's widespread IT outage.

Stephen Hester RBS CEO Stephen Hester apologised

The glitch affected millions of people with bank and online accounts at RBS, NatWest and Ulster Bank.

RBS chief executive Stephen Hester was forced to apologise repeatedly for the problem, and the group subsequently set aside tens of millions of pounds to deal with customer complaints.

In a statement, the FCA said: "The Financial Conduct Authority has started to conduct an enforcement investigation into the IT failures at RBS which affected the bank's customers in June and July 2012.

"The FCA will reach its conclusions in due course and will decide whether or not enforcement action should follow that investigation."

Customers were affected across the United Kingdom and southern Ireland, along with residents of other countries using web services.

A spokesman for RBS told Sky News: "Last summer's IT failure was unacceptable.

"We have already made significant improvements and over the next three years will invest hundreds of millions in our systems.

"We will be working closely with our regulators in the UK and the Republic of Ireland.

"Our customers deserve a service they can rely on 100% of the time and that's what we want to provide."


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