Bank of England fines former TSB executive over 2018 IT meltdown

The Bank of England has handed an £81,620 fine to Carlos Abarca.

The bank’s former chief information officer has been fined (Aaron Chown/PA) (PA Wire)

TSB Bank’s former chief information officer has been fined after its botched IT upgrade in 2018.

The Bank of England has handed an £81,620 fine to Carlos Abarca after the failed IT migration left many of its 5.2 million customers unable to access banking services.

The central bank’s Prudential Regulation Authority (PRA) division penalised the IT specialist under the UK’s senior manager conduct rules, which were introduced after the 2008 financial crisis to hold top bankers to increased account.

Issues following TSB’s planned upgrade saw disruption across TSB’s entire branch network, as well as its internet, mobile and telephone banking systems.

In this case, the PRA has fined Mr Abarca because his management of a key outsourcing relationship fell below the standard we expect

Sam Woods, chief executive of the PRA

Sam Woods, chief executive of the PRA and deputy governor of the Bank, said: “Senior 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.”

It comes after TSB was fined £48.7 million by the PRA and Financial Conduct Authority (FCA) regulators in December.

The fine added to the £32.7 million already paid out by TSB to retail and corporate customers affected by the debacle.

On Thursday, the PRA said its investigation found that Mr Abarca failed to “take reasonable steps” to ensure the lender complied with outsourcing rules.