The Financial Conduct Authority (FCA), which is responsible for regulating banks and financial institutions in the UK, has frequently criticised banks over their technology infrastructure, stating that it was not up to the mark and that they should do more to update their technology to benefit all stakeholders.
It was therefore embarrassing for the FCA when its own technology infrastructure recently let it down. It was left red-faced after a hardware-related issue caused many of its systems to go offline. The FCA acknowledged that the problem lasted for 48 hours.
Just a few days before its own IT meltdown, the FCA had informed banks and financial institutions to have proper controls and checks in place so that they could continue working even if there was an unexpected disruption.
FCA Director of Specialist Supervision Nausicaa Delfas stated that the regulatory body had observed that, sometimes, the continuity plans that businesses have are not feasible enough to reap the right results.
The FCA attempted to blame its IT contractor for the outage, stating that the problem was with an IT contractor’s data centre and the hardware used at the centre.
The FCA released a statement saying that it had proper recovery procedures in place, and even with the IT outage, it was able to operate as usual. The statement went on to claim that the majority of the systems were now working normally, and in the coming few days, the organisation would be testing and updating the systems to ensure that such disruptions do not occur in the future.
Last year, the FCA had been involved in controversy with regards to its information technology. In September 2015, the organisation had purchased software at a discounted price but ended up discarding it, causing a loss of £3.2 million.