Interxion, a leading European provider of carrier-neutral colocation data centre services, has announced the results of an independent study by financial industry think-tank, JWG. The research is focused on the impact of anticipated regulation of the financial services industry on the ICT infrastructure requirements of banking and insurance firms across Europe.
The research – based on interviews with select industry practitioners, a pan-European industry survey of IT decision makers within banking and insurance firms and a review of more than 4,000 pages of regulation stipulated by the G20 in the aftermath of the financial crisis. These include the implementation of new capital requirements, as defined by Basel III and Solvency II, and reforms such as MiFID II and the European Market Infrastructure Regulation (EMIR) that will significantly affect firms’ systems, controls, reporting and record keeping ability. These regulations require major upgrades starting in 2012 and rippling across industry sectors for the rest of the decade. The study found that a massive 71% of respondents did not believe that legacy system upgrades required to meet compliance objectives would be complete by the required implementation date in 2015, while an overwhelming 90% stated that penalties for non-compliance by the end of this year will run into the tens of millions of dollars.