PracticeConsultingBanks facing £60m IAS bill

Banks facing £60m IAS bill

Banks and other financial institutions will have to spend as much as £60m on IT to comply with international accounting standards, with another £4.4m on top of this to meet Sarbanes-Oxley requirements.

Link: IAS special report

p> Beside the banking rules coming in under Basel II, the top compliance priority for European banks, was Sarbanes-Oxley, EIU report said.

Total cost of compliance across Europe was estimated at $2bn.

Gareth Lofthouse, European director of executive services at the Economist Intelligence Unit, said companies are struggling with a huge change management problem because of multiple compliance requirements.

The problem is being made worse by the fact that only one third of financial services companies involve senior IT staff when planning their compliance programmes.

Peter Redshaw, analyst at Gartner, added: ‘As so much of this work is enabled by IT, it is foolish to go too far without involving them.’

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