Pearse Doherty
Question:132. Deputy Pearse Doherty asked the Minister for Finance if he has ever received a full report into the computer failure at Ulster Bank in summer 2012. [16497/14]
View answerTuesday, 8 April 2014
Questions (132, 133, 134, 135)
Pearse Doherty
Question:133. Deputy Pearse Doherty asked the Minister for Finance the rights of customers affected by an information technology, IT, failure at a bank. [16498/14]
View answerPearse Doherty
Question:134. Deputy Pearse Doherty asked the Minister for Finance the regulatory actions taken when a bank experiences a computer problem affecting its customers. [16499/14]
View answerPearse Doherty
Question:135. Deputy Pearse Doherty asked the Minister for Finance the regulatory procedures in place to ensure banks' information technology, IT, systems are fit for purpose; and if he will make a statement on the matter. [16500/14]
View answerWritten answers
I propose to take Questions Nos. 132 to 135, inclusive, together.
Customers have a legitimate expectation of high quality, uninterrupted services, whether provided through traditional or online channels. It is my role as Minister for Finance to put in place an appropriate legislative framework for the regulation of the financial services sector. The Central Bank is responsible for prudential supervision and financial regulation including consumer protection. The Financial Services Ombudsman is an independent office established to deal with consumer complaints about their dealings with financial institutions. Therefore, I believe that we have a robust regulatory framework in Ireland to deal with issues such as computer problems that may affect customers of banks operating here.
Whilst I did not receive a full report into the computer failure at Ulster Bank in Summer 2012 from the Central Bank or FSO, my Department is aware of the steps taken to resolve the issue. I am aware that Ulster Bank worked with the Central Bank of Ireland on a restitution plan for customers affected by its IT system failure in 2012. Implementation of the redress plan was actively monitored by the Central Bank via submission of weekly reports from Ulster Bank checking the level and type of complaints. Two on-site visits were carried out in September and November 2012 to ensure that the redress plan was being followed and that customers interests were being protected. These concluded that Ulster Bank was dealing with claims in accordance with the redress plan. The Deputy will be aware that the Financial Services Ombudsman spoke about his engagement with Ulster Bank on this issue at the Joint Committee on Finance, Public Expenditure and Reform on 5 March 2014.
The Central Bank has informed me that it expects all firms to have adequate systems and controls in place and where issues that impact customers arise they should be addressed and rectified urgently, particularly as customers are increasingly using and becoming dependent on online and mobile banking services. In this regard, the Central Bank expects firms to communicate clearly and promptly with affected customers when a technical incident occurs, including details of the impacted service, details of alternative access to services and an undertaking that identifiable loss will be remediated. The Central Bank's expectations have been communicated to banks.
The payments system is monitored by the Irish Payments Services Organisation (IPSO). IPSO, in conjunction with the Central Bank, has implemented an annual Risk Assessment exercise with the Clearing Banks. This annual process assesses the risk management capabilities across the Banks in relation to payments activities. The submissions from the Banks are externally validated.