UPDATE - Online Brokers Under Fire After Series of Computer Crashesgreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread
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June 7, 2000
Online Brokers Under Fire BY PATRICK HOSKING Main City watchdog the Financial Services Authority yesterday warned the mushrooming online stockbroking industry after a series of embarrassing computer crashes.
The rebuke came as another online stockbroker, Selftrade.co.uk, backed by the Rothschild investment bank, was launched in the UK promising to conduct business for Internet-based investors for a cut-rate #12.50 per transaction.
FSA director of investment business Michael Folger told online brokers to get their systems in better shape. "I need not name names, but we have seen some pretty arresting failures of online systems over the past 12 months," he told an online investing conference.
Halifax's system was down three days last week. Earlier, it accidentally divulged details of some clients. Other online brokers hit by glitches include Charles Schwab and e-trade.
The FSA can fine brokers which fail to protect customers' interests or install risk management systems. ) Express Newspapers, 2000 http://www.lineone.net/express/00/06/07/city/c0300brokers-d.html
-- (Dee360Degree@aol.com), June 07, 2000