About a-team Marketing Services

A-Team Insight Blogs

MPs Call for Action Over IT Failures, Target Cloud Service Providers

Subscribe to our newsletter

MPs from the influential Treasury Committee have slammed the “unacceptable” level of IT failures in financial institutions, warning that greater penalties should be exerted on institutions that fail to meet requirements and calling for the UK’s three major regulators – the Financial Conduct Authority, Prudential Regulation Authority, and the Bank of England – to be given more resources to deal with the growing problem.

An increase in the financial levies on banks could be needed to ensure that the regulators are adequately funded, said the committee in a report published today outlining the results of a public enquiry into the concerns. The report also raised concerns around the increased use of third-party providers of cloud services for computing power and data storage, citing them as a key source of systemic risk.

“The consequences of a major operational incident at a large cloud service provider, such as Microsoft, Google or Amazon, could be significant,” noted the report. “There is, therefore, a considerable case for the regulation of these cloud service providers to ensure high standards of operational resilience.”

Guy Warren, CEO of monitoring and analytics software provider ITRS Group, submitted evidence to the enquiry.

“Operational resilience has deteriorated over the last few years as the number of digital channels and volumes of transactions have increased, with very little pause for thought,” he tells RegTech Insight.

“This morning’s announcement from the MP committee is a strong message that banks need to take a step back and put operational resilience at the top of the agenda. The resilience of IT systems no longer falls to the back-office IT team. As the regulator pushes this operational resilience campaign forward, executives at retail banks can expect to be more in the spotlight than ever and be personally accountable for the operational resilience within their organisation.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to develop a reporting framework for ESG disclosure regulation

ESG reporting is a challenge and additional burden for many financial institutions as regulations continue to evolve, ESG data management is complex, and global standards remain elusive. Helpful solutions include reporting frameworks that support the collection, understanding, and management of ESG data for disclosure. This webinar will provide practical guidance on how to build a...

BLOG

ESG Integration Hurdles, and Spreadsheets, Worry Data Experts

Resourcing constraints and fragmented business practices are holding back companies from integrating ESG processes into their operations. They are also still relying on manual data management to meet their ESG obligations. These findings, presented in a recent study of corporate ESG preparedness by KPMG, point to potentially dire consequences for financial institutions that use data...

EVENT

TradingTech Summit London

Now in its 13th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...