{"id":629567,"date":"2023-04-15T09:49:43","date_gmt":"2023-04-15T14:49:43","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/15\/former-tsb-cio-fined-for-migration-meltdown\/"},"modified":"2023-04-15T09:49:43","modified_gmt":"2023-04-15T14:49:43","slug":"former-tsb-cio-fined-for-migration-meltdown","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/15\/former-tsb-cio-fined-for-migration-meltdown\/","title":{"rendered":"Former TSB CIO fined for migration meltdown"},"content":{"rendered":"<div id=\"content-header\">\n<h2>Both TSB and its CIO have now been fined for the catastrophic migration of TSB\u2019s core banking system<\/h2>\n<\/div>\n<div id=\"content-center\">\n<ul>\n<li><i data-icon=\"1\"><\/i><\/li>\n<li><i data-icon=\"2\"><\/i><\/li>\n<\/ul>\n<div id=\"contributors-block\">\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Cliff-Saran-Sep-2022-140x180px.jpg\" alt=\"Cliff Saran\">\n\t\t\t\t\t<\/p>\n<p><span>By<\/span><\/p>\n<ul>\n<li>\n\t\t\t\t\t<a href=\"https:\/\/www.techtarget.com\/contributor\/Cliff-Saran\">Cliff Saran,<\/a><br \/>\n\t\t\t\t\t\t<span>Managing Editor<\/span>\n\t\t\t\t\t\t<\/li>\n<\/ul>\n<p>\n\tPublished: <span>14 Apr 2023 10:15<\/span>\n<\/p>\n<\/div>\n<section id=\"content-body\">\n<p>The Prudential Regulation Authority (PRA) at the Bank of England has fined the former CIO of TSB bank for his part in the catastrophic migration of the bank\u2019s IT to a new system.<\/p>\n<p>In the final notice sent to the <a href=\"https:\/\/www.computerweekly.com\/news\/450431320\/CIO-interview-Carlos-Abarca-TSB\">former CIO Carlos Abarca<\/a>, the PRA said the action it has taken \u201cemphasises the importance of ensuring that senior individuals in a firm take reasonable steps to ensure that the firm complies with the relevant regulatory requirements and standards, in compliance with Senior Manager Conduct Rules\u201d.<\/p>\n<p>The PRA\u2019s investigation found that Abarca breached the PRA\u2019s Senior Manager Conduct Rule 2 because he failed to take reasonable steps to ensure that TSB complied with the PRA Outsourcing Rule.<\/p>\n<p>Sam Woods, deputy governor for Prudential Regulation and CEO of the PRA, said: \u201cSenior managers have an essential role to play in ensuring that firms manage and supervise outsourcing effectively. In this case, the PRA has fined Mr Abarca because his management of a key outsourcing relationship fell below the standard we expect.\u201d<\/p>\n<p>In April 2018, TSB moved millions of customer accounts from the systems of Lloyds Bank \u2013 which has hosted them since TSB was separated from Lloyds \u2013 to a new core banking platform from its current owner, Spanish bank Sabadell.<\/p>\n<p>Prior to this migration, Paul Pester, TSB Bank CEO, said that the new platform, called Proteo4UK, was already being used to support a number of core services. He said the migration required \u201cover 2,500 man years of effort by TSB, Sabadell and our technology partners, [meaning] TSB will be the first major bank in the UK to have designed and built a new banking platform for the digital age\u201d.<\/p>\n<p>But <a href=\"https:\/\/www.computerweekly.com\/news\/252439859\/TSB-IT-meltdown-has-the-makings-of-an-epic\">over a five-day period<\/a> following the migration, customers were locked out of their accounts and experienced money disappearing from accounts. Some were even able to see other customers\u2019 accounts.<\/p>\n<p>All of TSB\u2019s branches and a significant proportion of its 5.2 million customers were affected by the initial issues. Some customers continued to be affected by some issues and it took until December 2018 for TSB to return to business as usual. TSB paid \u00a332.7m in redress to customers who suffered detriment.<\/p>\n<p>The new core banking system, Proteo4UK, was built as a <a href=\"https:\/\/www.computerweekly.com\/news\/252442575\/Financial-Conduct-Authority-raises-questions-over-TSBs-IT-regression-testing\">UK-specific version of Sabadell\u2019s existing core banking system<\/a>. The PRA said that TSB\u2019s migration to the Proteo4UK Platform and the provision of IT services and outsourcing arrangements with Sabis, the IT arm of Sabadell, were critical to TSB\u2019s ability to provide continuity of banking services, and therefore to its safety and soundness.<\/p>\n<p>\u201cMr Abarca\u2019s conduct fell outside the range of reasonable responses for a CIO in his position in a PRA authorised firm, and contributed to the disruptions to the continuity of TSB\u2019s core banking functions post-MME,\u201d it said.<\/p>\n<p><a href=\"https:\/\/www.computerweekly.com\/news\/252528519\/TSB-hit-with-huge-fine-after-IT-migration-disaster\">On 20 December 2022<\/a>, the PRA imposed a financial penalty of \u00a327m (reduced to \u00a318.9m upon settlement) on TSB. The PRA said it found that TSB breached Fundamental Rule 2 because it failed to exercise due skill, care and diligence in managing appropriately and effectively the outsourcing arrangements with, and services provided by, Sabis and the risks arising from this, including operational risk.<\/p>\n<p>\u201cTSB\u2019s breach of Fundamental Rule 2 stemmed from an undue reliance on Sabis as an intragroup provider, which in turn led to a level of oversight that was not consistent with the importance and scale of the migration programme,\u201d the regulator stated.<\/p>\n<\/section>\n<section id=\"DigDeeperSplash\">\n<h4>\n\t\t\t<i data-icon=\"m\"><\/i>Read more on IT project management<\/h4>\n<ul>\n<li><a id=\"DigDeeperItem-1\" href=\"https:\/\/www.computerweekly.com\/news\/252528519\/TSB-hit-with-huge-fine-after-IT-migration-disaster\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/TSB_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/TSB_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/TSB.jpg 1280w\" alt ><\/p>\n<h5>TSB hit with huge fine after IT migration disaster<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Karl-Flinders-profile-pic-2022-140x180px.jpg\" alt=\"KarlFlinders\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Karl\u00a0Flinders<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-2\" href=\"https:\/\/www.computerweekly.com\/news\/252482926\/COO-interview-Suresh-Viswanathan-TSB\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/TSB_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/TSB_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/TSB.jpg 1280w\" alt ><\/p>\n<h5>COO interview: Suresh Viswanathan, TSB<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Karl-Flinders-profile-pic-2022-140x180px.jpg\" alt=\"KarlFlinders\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Karl\u00a0Flinders<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-3\" href=\"https:\/\/www.computerweekly.com\/news\/252474751\/TSB-neglected-to-assess-capabilities-of-main-IT-provider-in-its-failed-system-migration\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/IT-project-management-3-fotolia_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/IT-project-management-3-fotolia_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/IT-project-management-3-fotolia.jpg 1280w\" alt ><\/p>\n<h5>TSB neglected to assess capabilities of main IT provider in its failed system migration<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Karl-Flinders-profile-pic-2022-140x180px.jpg\" alt=\"KarlFlinders\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Karl\u00a0Flinders<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-4\" href=\"https:\/\/www.computerweekly.com\/news\/252474392\/TSB-tech-woes-continue-with-overnight-systems-failure\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/money-payment-cash-coins-notes-getty_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/money-payment-cash-coins-notes-getty_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/money-payment-cash-coins-notes-getty.jpg 1280w\" alt ><\/p>\n<h5>TSB tech woes continue with overnight systems failure<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Karl-Flinders-profile-pic-2022-140x180px.jpg\" alt=\"KarlFlinders\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Karl\u00a0Flinders<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<\/ul>\n<\/section>\n<\/div>\n<p><a href=\"https:\/\/www.computerweekly.com\/news\/365535176\/Former-TSB-CIO-fined-for-migration-meltdown\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Dion Kucera<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Both TSB and its CIO have now been fined for the catastrophic migration of TSB\u2019s core banking system By Cliff Saran, Managing Editor Published: 14 Apr 2023 10:15 The Prudential Regulation Authority (PRA) at the Bank of England has fined the former CIO of TSB bank for his part in the catastrophic migration of the<\/p>\n","protected":false},"author":1,"featured_media":629568,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22853,148,46],"tags":[],"class_list":{"0":"post-629567","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-fined","8":"category-former","9":"category-technology"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/629567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=629567"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/629567\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/629568"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=629567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=629567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=629567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}