Compliance costs will rise under FCA and PRA

Compliance officers believe the cost of regulation is set to rise by up to 20 per cent under the Prudential Regulation Authority and the Financial Conduct Authority.

The Scotsman last week reported research carried out by consulting firm Protiviti, which found half of the senior compliance professionals polled expect their company’s compliance costs to increase under the new regulatory structure.

The survey found just 17 per cent believe their firm is completely prepared for the different reporting demands and processes of the twin peaks structure. A further 13 per cent say they are only beginning to prepare for the new regulatory structure now.

Around 66 per cent of those polled said the creation of the PRA and FCA was unlikely to prevent another financial crisis.

Protiviti UK managing director Bernadine Reese says: “The changes being made to UK financial regulation are substantial and radical, yet the concern is many firms remain unprepared.”