Compliance costs may result in firm closures

Future compliance costs could result in company closures under the FSA regime, according to research from compliance outsourcing specialist, Huntswood.

The survey questioned compliance professionals on the effects of regulation on the industry and found four out of five thought the costs would prove too high for some firms. 38% thought the Sandler report would have the most impact and 28% thought N3 would be the most damaging financially.

David Brownlow, chief executive at Huntswood, said: ‘There is growing concern that the ever-increasing costs of compliance will lead to the restructuring of the financial services industry.’