Regulations to Raise Cost of Compliance in 2011: Thomson Reuters

February 14, 2011 at 11:29 AM
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Compliance professionals around the world expect to have to spend more time and resources to work with regulators and exchanges in the coming year, according to the second annual Cost of Compliance Survey for 2011, released Monday by Thomson Reuters.

Of the 337 global compliance professionals who responded to the survey between November 2010 and January 2011, 71% said they foresaw that an increased effort would be required to work with regulators and exchanges to ensure they were adequately prepared to meet regulatory requirements. The previous survey, completed at the end of 2008, found that 66% expected an increase in 2009.

The new survey also highlighted the need for financial services firms to make sure their compliance functions operate in tandem with internal audit, risk and legal functions to ensure there is a consistent and integrated approach to risk identification, management and mitigation.

Two years after the climax of the global financial crisis, financial regulation is in full swing. The survey found that compliance professionals expect much of the regulatory change to come into effect in 2012, leaving 2011 as the year of consultations and the need to fine tune the planned changes. Eighty-six percent of respondents believe that the focus on managing regulatory risk will at least increase in 2011, with 42% expecting the focus to increase significantly.

Because of the increased focus on all aspects of regulation combined with the increasing demands on compliance officers, 79% of respondents expect the cost of senior compliance staff to increase in the next year. In the earlier survey, 50% of respondents anticipated an increase in 2009.

The Governance, Risk and Compliance businessof Thomson Reuters brings together global regulatory and securities intelligence; contract and deal drafting tools; internal policy management; e-learning; anti-money laundering solutions; and audit, filing and disclosures services. The unit comprises GRC brands including Complinet, Paisley, Westlaw Business, Westlaw Compliance Advisor, Oden and West's Capitol Watch.

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