1.The Treasury Committee launched its IT failures in the financial services sector inquiry on 23 November 2018. It followed a series of high-profile service disruptions within the financial services sector, most notably the TSB IT migration in 2018. Issues following the migration caused significant disruption to customers for a prolonged period of time, and we have an ongoing inquiry into Service Disruption at TSB1. There have also been many other incidents, including those at Visa and Barclays.
2.Previously, in the wake of significant incidents we had routinely written to the affected firms to seek further information about the incident in question, typically: the root cause, the scale of the incident, the firm’s response, and any arrangements for customer compensation. While we may continue this practice in the future, this inquiry provided an opportunity to take a more holistic approach, looking ‘under the bonnet’ of the financial services sector to examine why operational incidents were becoming more frequent, how firms should have guarded against and responded to them, and the role of the Regulators in preventing and mitigating the impact of incidents through their rule books and their operational policies.
3.We held the following oral evidence sessions:
4.We would like to thank all those who provided written and oral evidence during this inquiry.
5.We were assisted in this inquiry by Gareth Lewis as our specialist adviser. We are grateful for his contribution to this inquiry.
1 Treasury Committee, , accessed 22/10/2019
2 Gareth Lewis has declared interests in relation to his work as a Specialist Adviser on this inquiry as follows: appearing on an Amazon Web Services conference panel, and potential consulting work for Google, Cutover and an independent consulting house.
Published: 28 October 2019