When IT breakdowns how do I get my financial portfolio’s ?
The FCA reported in April 2013 that they had started to conduct an enforcement investigation into the IT failures at RBS which affected the bank’s customers in June and July of the previous year. The FCA will reach its conclusions in due course and will decide whether or not enforcement action should follow that investigation.
RBS’s failures had at the time imposed large costs on UK citizens and created a huge embarrassment to the UK financial markets, These incidents not being the only issues that the bank had struggled with thru lack of of IT Investment.
As a consumer this is not acceptable, but if this was your financial business and you couldn’t access key system to transact you business whilst treating the customer fairly where would this leave you. Every business wants to be able to provide a services to there customers but as our experience shows, the compliance officer in MGA and Insurance is usual screaming process we need to follow to be compliant whilst an IT team , third party supplier and infrastructure team are concentrating on just get the system back up, be it in stages or in one go as the underwriters, brokers and insurance companies are all chasing there data and want reassurance as to what is now valid and at what time the data is unreliable. Any Business who say we don’t have any data fixes post a incident is either blessed by there god or are being economical with the facts.
So as the owner or director who do you give your empathy to, the Compliance Officer who is doing the best to keep you with in regulation or the IT boffin who just is beavering away to fix it then work out what went wrong ?
The FCA say that Firms should give clear and accurate advice about insurance products so that customers understand what a policy does and any limitations it may have. If all this is digital how can you do that ?
The FCA go onto say you should:
- only sell policies which customers are eligible to claim for
- explain to customers that claims could be rejected or reduced if they give false information or fail to disclose all relevant information when they make a claim
- explain all elements of a policy so that customers have a balanced picture and can make an informed choice as to whether to buy a product
- provide new demands and needs statements to customers when they renew policies to show that you understand their insurance needs and how your recommendations suit those needs
Do you have methods to share these if your IT systems are down and that information is stored there ?
Related Topics: FCA Detailed IT Control form, IT systems and controls SYSC requirements, FCA Download
IT Self Assessment Questionnaire, FCA Complex IT System Filter Questions