0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

Financial Conduct Authority launch regulatory investigation into TSB

15 June 2018

The Financial Conduct Authority (FCA), the UK’s banking regulator, has launched an investigation into the latest banking crisis to affect members of the public, namely TSB customers. Following a transfer of customers' data from an old IT system, millions of people were left without access to their accounts. Over six weeks later some customers are still struggling to make payments and the police have reported vast increases in fraudsters attempting to target TSB customers with 'phishing'.

The CEO, Chairman and Chief Operating Officer of TSB have all been forced to answer questions before the Treasury select committee over the crisis and the way TSB handled the aftermath. Now the FCA investigation will place significant demands on the bank's management time and resources. Ultimately the FCA can bring criminal prosecutions or take other enforcement action including limiting TSB’s ability to operate in the financial services sector. Even if the investigation doesn’t result in enforcement action, the reputational damage of such a public investigation will be a challenge.

This is a further example of an organisation's business practices being scrutinised in a very public arena with an increasing demand for accountability, reparation and evidence of improvement if corporate or individual failures are identified. There is an increasing legislative focus on corporate responsibility and the importance of organisations and employers properly supervising the actions of their employees and indeed third parties with whom they do business.

The Criminal Compliance and Regulatory team regularly advises organisations in connection with the conduct and management of internal investigations and investigations by Regulators.

Not all mismanagement and bad practices are so public. Often issues come to light through whistleblowers or are only identified and rectified following an effective and proportionate internal investigation.

This is invariably business sensitive, any report or documented investigation outcome produced is likely to be publicly disclosed in some form and thus careful and effective preparation of such a report is vital. It forms the foundation of an organisation's defence, justifications or acknowledgement of fault together with remedial actions. Its aim invariably is to give confidence both internally and externally that wrongdoing or failures will not be repeated.

The criminal compliance and regulatory team has brought together the team’s existing skills and investigation experience to develop an internal investigation project management service available to clients who suspect or face allegations of wrongdoing within the organisation.

related opinions

Sussex Partnership NHS Trust fined £200,000 – A warning for providers and investors

Sussex Partnership NHS Trust was sentenced on 14 June 2019 for failing to provide safe care and treatment to a 19 year old inmate being cared for on the hospital wing of Lewes Prison, Jamie Osborne.

View blog

Cyber risks – are businesses really ready?

The Hiscox Cyber Readiness report, a review of 3300 organisations, will be a stark warning for CEO’s of SME’s in the UK and in Europe.

View blog

Treasury Committee Report on Economic Crime - Government Response

The House of Commons Treasury Committee ('Committee') published the Government’s response to its report on economic crime on 7 May 2019.

View blog

Children and contact with parents who are domestic abusers

It was announced on 15 May 2019 that “more than 120 MPs have written to the government asking for an inquiry into how family courts in England and Wales treat victims of domestic violence.”

View blog

mailing list sign up

Select which mailings you would like to receive from us.

Sign up