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There is no issue, if you change local system to different user.
Running Oracle service as Local System user is normal behaviour. Show the below link to your boss that no need a seperate account in Windows.
Hope this helps.
Click here to [createdisk, deletedisk and querydisk in ASM|http://www.oracleracexpert.com/2009/09/createdisk-deletedisk-and-querydisk-in.html]
Click here to [See the ORA-27102 Error and Soltuion|http://www.oracleracexpert.com/2009/08/ora-27102-out-of-memory-on-solaris.html]