FCA and PRA fine bank £1.89 million for outsourcing failings
The regulators found the bank's systems and controls supporting the oversight and governance of its outsourcing arrangements were inadequate and exposed customers to unnecessary and avoidable harm and inconvenience.
The FCA reminded firms "there is no lower standard for outsourced systems and controls and firms are accountable for failures by outsourcing providers".
Sam Woods, CEO pf the PRA, commented: "Firms’ ability to manage outsourcing of any critical activities is a vital part of maintaining their safety and soundness. Such outsourcing is an important part of a firm’s operational resilience, and particularly so . . . given the level of reliance on outsourcing in [the bank's] business model. In addition, this was a repeat failing which demonstrates a lack of adequate and timely remediation. This is a significant aggravating factor in this case, leading to an uplift in the penalty." (Read more here.)
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