Royal Bank of Scotland is facing a record fine from the FCA for an IT failure in 2012 that left customers unable to pay bills or access cash from their accounts.
Sky News reports the regulator has told RBS it must pay a fine worth tens of millions of pounds, which would be a record for a systems-related problem.
In June and July 2012, a software upgrade saw RBS, NatWest and Ulster Bank customers face disruption to account services for two weeks. That year RBS made a provision of £175m in compensation for those affected.
In April 2013, the FCA announced it was investigating RBS over the failure.
In its half-year results published last week, RBS said enforcement proceedings have commenced.
Separately, the Central Bank of Ireland initiated an investigation into the failure and has issued enforcement proceedings against Ulster Bank Ireland.
RBS says in its results that Ulster Bank anticipates entering into settlement discussions with the CBI before the end of the year.
According to Sky News, sources put the scale of the FCA fine at “several tens of millions of pounds”, which would rank it among the largest ever imposed by the regulator for offences unrelated to the manipulation of financial markets.
Last December, RBS suffered another systems outage on the busiest online shopping day of the year, the third time in about 18 months that such a problem had prevented customers from using cards, cash machines and online banking services.
RBS has since pledged to invest more than £1bn in its digital capabilities and IT systems during the next three years.
RBS and the FCA declined to comment.