Financial services firms have warned the cost of complying with regulations after the FSA is split next year could rise by 20%, according to a survey by consulting firm Protiviti.
Its research found half of senior financial services compliance professionals expect their company’s costs to rise under the new regime, the Scotsman reports.
Two thirds of respondents also do not believe the new system will effectively prevent a repeat of the financial crisis and some warned it could make the UK less attractive as a place to do business, according to the paper.
Only 17% of respondents think their firm is completely prepared for the new structure, while 63% are partially prepared and 13% are just starting their preparations.
Bernadine Reese, managing director of Protiviti UK, said: “The changes being made to UK financial regulation are substantial and radical, yet the concern is that many firms remain unprepared.”
