2.16 As the introduction of Thaler for the ISA product was successful, SBS selected the software as the IT element to re-engineer NS&I's operational processes. SBS engaged Thaler's developers as external IT consultants to configure the package for each product to be transferred onto the new IT platform. NS&I and SBS do not plan to migrate products which are no longer on sale to Thaler. Instead, they are reviewing how to manage remaining liabilities to investors. NS&I and SBS are also reviewing how Ordinary Accounts and Investment Accounts will develop, including the possible IT solutions. NS&I's legacy systems are known to contain many inherent weaknesses, which gave rise to product accounting problems considered by the Committee of Public Accounts in 1996 and 1998. While products remain accounted for by the legacy systems, which is likely to be for several more years, the weaknesses need to be addressed. SBS told us that product accounting has been a prime focus for itself and NS&I and it has been significantly improved to address migration issues. SBS also told us that it is committed to continuous performance improvement of the area and that it had reviewed the product accounting arrangements and the IT systems which support remaining legacy products and has developed a programme of change to address the weaknesses.
2.17 By and large the terms and conditions of products were not changed before migration although NS&I did enhance a number of products, in terms of interest payable and term, before migration. SBS told us that its strategy on migrations represented a low risk approach. It considers fundamental changes to the products before migration would have been riskier and would have extended the time required to migrate beyond that allowed in the contract.