19 Mar 99
The Year 2000 problem is a
business issue for virtually all financial services providers. The
responsibility rests squarely with their boards and senior management to
ensure that they identify and do what is necessary to achieve adequate
business continuity. However, because of its potential impact on markets and
consumers, the Year 2000 problem and the readiness of regulated entities to
overcome it, is also of major interest to the regulators, in the case of
Gibraltar, the Financial Services Commission (FSC).
The Year 2000 problem is a well known and well - publicised future
problem. The risks which it presents to customers of financial services, and
to the sector as a whole, can be anticipated and reduced. Among other
things, the FSC is seeking to protect the public against possible financial
loss arising out of a failure on the part of financial services providers in
Gibraltar to respond to the potential problem.
The FSC has reviewed steps already taken by institutions, including the
potential impact on material relationships with third parties and the
ability of IT and non-IT systems to handle Y2K. The focus in the remaining
months will be shifting away from testing and renovation of systems by
institutions towards the establishment of business continuity plans by them.
With this in mind, the FSC is now making available on its web-site a paper,
produced by the Joint Year 2000 Council, on Guidelines for Financial
Institutions' Contingency Planning.
The FSC has also added a number of pages to its web-site that highlight
some of the most important issues surrounding the so called "Millennium" or
"Y2K" Bug and is drawing these additions to the attention of all regulated
entities in Gibraltar. The papers can be found at the following URL -
and cover the following areas :
- The Role of the FSC.
- What is the Y2K Bug ?
- Impacts and Risks of the Year 2000 Problem.
- Testing for Year 2000 Readiness.
- Contingency Planning & Risk Mitigation.
The web-pages have a couple of novel features.