Last month, Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee, wrote to Andrew Bailey, Chief Executive of the Financial Conduct Authority (FCA), to ask about the problems faced by retail and business customers following TSB’s IT migration.
In his response, Mr Bailey said:
- When giving evidence to the Treasury Committee in May, Paul Pester, Chief Executive of TSB, "was portraying an optimistic view of the services” and that "greater caution would have made sense".
- Dr Pester could “have shared more detail [on the incident] with the Committee”, including IBM's initial views.
- "The FCA has been dissatisfied with TSB’s communications with its customers and we have had concerns that TSB was not being open and transparent about the issues experienced."
- "[T]he current communications were perceived as poor, and could reduce trust in TSB and in the banking sector as a whole."
- "TSB have not met the requirement in the Payment Services Regulations to refund all relevant customers as soon as practicable and in any event by the end of the business day after the day which it becomes aware of the fraud."
Commenting on the correspondence, Mrs Morgan said:
"The regulator does not make such criticisms lightly. 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.
The Committee will discuss Mr Bailey’s letter, and the ongoing problems faced by TSB customers, when it sees Dr Pester and other TSB Board members, as well as the FCA, on Wednesday."