|13 MAR 2014|
|Thomson Reuters Annual Cost of Compliance Survey Shows More Than Half of Compliance Officers Expect Personal Liability to Increase in 2014|
Increased cost of compliance, ongoing regulatory change and growing importance on reporting place added demands on compliance teams
NEW YORK, March 13, 2014 - Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, today announced the findings of its annual Cost of Compliance survey which revealed that 53 percent of compliance officers now feel that their personal liability has increased; a reflection of increased focus on senior individuals at the supranational level.
According to the survey, this perceived increase in personal liability may be a contributing factor of costs associated with senior compliance officers continuing to escalate.
The findings also highlighted the diverse pressures which compliance functions continue to face, with shifting supervisory expectations, no let-up in the volume of regulatory change and the start of many of the big implementation programs for major complex legislation.
Thomson Reuters surveyed more than 600 compliance practitioners from financial services firms including banks, brokers, insurers and asset managers across 71 countries covering Africa, the Americas, Asia, Australia, Europe and the Middle East. It builds on annual surveys of similar respondents conducted over the course of the last five years, offering year-on-year trends and developments. Key findings from the latest report include:
"The ability to comply with confidence and transparency is integral to building trust in the financial services sector," says Chris Perry, managing director, Risk, Thomson Reuters. "Compliance leaders are being held to increased accountability amidst an ever-increasing volume of regulation, the expectation to move and comply fast, and the exposure to record fines for non-compliance, now regularly totaling in the billions. In this time of heightened scrutiny, it has never been more important that boards support their compliance function and its senior leadership with the budget, resources and tools to help ensure transparency, trust and a lasting change in behaviors throughout firms."
Increased Cost of Compliance
Complex Regulatory Change
Given the increase in the volume of regulatory information published it makes sense that firms are spending more time tracking and analyzing the impact of regulatory developments. Overall, almost a quarter of firms are spending more than 10 hours per week reviewing the implications of all this new information (22 percent in 2013). There were some regional variations in this area, however. For instance, the number of U.S. compliance teams spending more than 10 hours a week tracking and analyzing regulatory developments nearly doubled (13 percent in 2013 and 25 percent in 2014). There were similar results in the Middle East with 8 percent of compliance teams spending 10 hours or more tracking and analyzing regulatory developments in 2013 compared with 18 percent in 2014. Of equal note was the relative reduction in the number of UK firms spending 10 hours or more on this task.
Increase in Reporting
A detailed report on the survey's findings can be found at: http://accelus.thomsonreuters.com/special-report/cost-compliance-survey-2014
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