By Dan Ilett, 22 November 2005 11:35
NEWS
The UK Financial Services Authority (FSA) is urging companies to prepare for European compliance laws that are set to cost the banking industry $1bn in IT renewals.
The FSA is asking financial companies to prepare for the European Union's Markets in Financial Instruments Directive (MiFID) a regulation that will allow companies to provide services across borders and establish branches in other European states.
MiFID is planned to come into effect in the UK on 1 November, 2007. However, the FSA said it is unsure of the legal implications as the EU is still debating the regulation.
In a statement, Hector Sants, FSA managing director for wholesale business, said: "The implementation of the directive is a major challenge, both for the FSA and for industry and, while November 2007 may seem a long way off, preparing to meet the challenge cannot begin soon enough."
The remarks come as the FSA today published a MiFID guide for companies to follow.
Earlier this year, the FSA criticised the EU for imposing MiFID without carrying out a cost-benefit analysis.
Market analyst Tower Group believes that IT investment could exceed $1bn across the financial industry for companies to meet.
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