About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

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: ESG: A Growth Opportunity and a Regulatory Challenge

ESG investing, regulation and compliance are central concerns for financial institutions, although not all jurisdictions are equal. In the US, ESG has become a partisan issue making SEC regulation uncertain; the EU is on good form and has already implemented multiple regulations; and Asia Pacific is advancing as regulators and exchanges deploy ESG rules. Greenwashing...

BLOG

Providers of SFDR Reporting Solutions

Europe’s ESG regulatory space is dominated by the Sustainable Finance Disclosure Regulation, which requires listed companies in the bloc to declare the sustainability credentials of the funds they manufacture and the assets in which invest. Its intention is to give investors and advisers a clearer understanding of how sustainable investments are. Compliance requires the reporting...

EVENT

AI in Capital Markets Summit London

Now in its 2nd year, the AI in Capital Markets Summit returns with a focus on the practicalities of onboarding AI enterprise wide for business value creation. Whilst AI offers huge potential to revolutionise capital markets operations many are struggling to move beyond pilot phase to generate substantial value from AI.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...