UK financial sector likely to sustain services during flu pandemic

A six-week exercise assessing how prepared the UK’s financial services sector would be in the event of a flu pandemic indicated that the country’s financial sector would be able to sustain its core services. Led by the Financial Services Authority (FSA), about 70 firms — including the Tripartite authorities (Bank of England, HM Treasury and FSA) and providers of key financial infrastructure such as payments, clearing and settlement and the main exchanges — participated. The first five months of a flu pandemic were simulated over the six-week exercise. Participants assessed how they would cope as the pandemic grew progressively worse.”Early indications are that despite the extensive disruption and rising levels of absenteeism that would result from a pandemic, the financial sector would be able to sustain its core financial services,” the FSA said in a press release.But, some issues that emerged for further consideration include: the impact of a pandemic on consumers such as access to cash, ability to make mortgage payments and continuing insurance coverage; the practicality of relying on telecommuting for key staff; and the challenges involved in returning to business as usual.The Tripartite Authorities will publish a summary of the main findings before the end of the year.