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FSA split set to raise compliance costs by 20%
by Jun Merrett on Aug 29, 2012 at 09:47
Compliance costs have been estimated to rise by as much as 20% when he Financial Services Authority (FSA) is split into the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) according to compliance officers.
The Scotsman reported that research by consulting firm Protiviti showed that half of senior compliance officers predict compliance costs to rise under the new regulatory structure which will see the FCA and PRA come into force next year.
Results from the survey also revealed that only 17% of compliance officers believe their firm is 'completely' prepared for the demands of the upcoming dual regulatory bodies, with 63% stating they are partially prepared and 13% admitting they are only just starting to prepare for the changes.
Two thirds of the respondents said they felt the new regulatory system was unlikely to effectively prevent another financial crisis.
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.'
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