On 24 August, the FSA announced that it had fined the UK branch of a major insurance company £2.275 million, following the loss of 46,000 policyholders' personal data by the insurer's outsource partner. The loss arose following the outsourcing of data processing functions to the insurer's South African affiliate. The data was transferred by the affiliate to an unencrypted back-up tape as part of a routine transfer and was lost as a result. The insurer was unaware of the loss for over a year. The FSA found the insurer had not taken reasonable care to ensure its systems and controls were sufficient to deal with the potential risks of such outsourcing arrangements.