Regulatory cost burden forecast to double
The regulatory cost burden for the financial services industry has been forecast to almost double by 2010
A tidal wave of regulation has swept across the financial services industry
as a result of the credit crunch and the financial burden of the increased
regulation is unlikely to peak until it reaches £48bn in 2010, according to the
latest report from
Deloitte
UK.
The report, In Control? based on a study of actual operational data from 32
major financial institutions around the globe, forecasts the costs of regulation
will almost double from £28bn in 2007, to about £48bn by 2010.
Deloitte said the key issue for financial institutions was the lack of
clarity in the taxonomy around governance and control. This opacity of
definition was causing, on occasions, a failure in strategies.
Chris Gentle, Deloitte head of research, told Accountancy Magazine a prime
feature of the recent losses incurred by the major banks in the credit cruch was
the inability to link risk and control factors.
Further reading:
IFRS taxonomy ready for use shortly
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the Accountancy Magazine story
