You are here: Home - News -

FCA and PRA launch investigation into TSB meltdown

  • 06/06/2018
  • 0
FCA and PRA launch investigation into TSB meltdown
The Financial Conduct Authority (FCA) has launched an investigation into TSB following its IT meltdown last month that left customers unable to access their accounts for up to two weeks.


In a letter to the Commons Treasury Committee, Andrew Bailey (pictured), the chief executive of the regulator, confirmed that a formal investigation is being conducted alongside the Prudential Regulation Authority (PRA).

Bailey noted that this information is not normally made public but “given the level of public interest, I want to be clear that we will be conducting this work”.

In the letter, Bailey delivered a number of criticisms of Paul Pester, the TSB chief executive, pointing out that the regulator has been “dissatisfied with TSB’s communications” with concerns that the bank “was not being open and transparent about the issues experienced”.

Bailey added: “The current communications were perceived as poor, and could reduce trust in TSB and in the banking sector as a whole.”

Nicky Morgan MP, chair of the Treasury Committee, noted that the FCA does not make such stinging criticisms lightly.

She continued: “I am deeply concerned by TSB’s poor communications about the scale and nature of the problems it has faced; by its response to customer fraud; and by the quality and accuracy of the oral and written evidence provided by Dr Pester to the Committee.”

Pester and other TSB board members, as well as the FCA, are due to appear before the committee today.

There are 2 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Peter Izard of Investec
South Africa: Where the 100% mortgage lives on – Izard

It is all too easy to forget at times that our way of doing things here in the UK mortgage...