FSA warns banks over software glitches

4 September 2012

Major UK banks have been urged to make sure they put strong measures in place to prevent any software glitches occurring in their company.

The Financial Services Authority (FSA) has written to the country's nine largest banks and building societies to warn them against allowing an issue such as the Royal Bank of Scotland's (RBS) computer crash to happen again, the Financial Times reports.

Earlier this year, around 17 million RBS customers were unable to access their account for several weeks when a software update went wrong.

And the FSA has requested that all financiers provide it with the names of the executives within their organization who can be held accountable should such a serious issue arise in the future.

A spokeswoman from the regulator told the news source this is viewed as a "serious" matter.

Meanwhile, Andrew Tyrie, chairman of the Treasury select committee, noted: "Every bank should be checking its IT systems. We need to have confidence that such a failure cannot happen again."

By Asim Shah

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