Bosses are warned about millennium - again

Action 2000, the government millennium bug watchdog, has warned businessmen that they could face legal repercussions if adequate precautions against the millennium bug are not taken.

Firms have been warned that legal action could be taken if their systems disrupt another business or if they sell non-compliant products. Many companies, according to surveys both by Action 2000 and Taskforce 2000, check only their computers and do not take into account various related issues which could cause disruption.

One such is the effect a non-compliant supplier could have on a business. Many companies, according to surveys, have not checked their direct lines of supply. The study by Action 2000 into a group of companies in Hertfordshire revealed that "documentation of what companies have done to address this threat is lamentably sparse".

In addition, there are still a number of organisations which directly affect the public who continue to undergo work to bring them up to millennium compliance. Several of these could be financial institutions.

The Financial Services Authority issued a statement last week outlining their plans to bring financial organisations up to par. Michael Foot, FSA managing director, said : "Very significant progress has been made so far in 1999 and there is considerable confidence in the readiness of the UK financial services industry. But there is still much for the regulators and the industry to do over the next five months. There must be no let ups now".

According to results released by the FSA in July, two financial institutions, both of medium impact, were still classed as 'red' - serious risk of disruption; 28% were 'amber' - behind but expected to catch up; only 10% were green - all reasonable steps taken.

The FSA told i-FM today that if a firm wasn't complaint over the millennium weekend there could well be repercussions for the public.

Julie Crisp