More Outsourcing of Compliance Tasks as Regulatory Demands Rise, Survey Finds

Growing regulatory demands are preventing financial companies from pro-actively improving their internal processes, such as in their IT departments, according to Thomson Reuters’ 2016 global cost of compliance survey. The recent report, Cost of compliance 2016, is based on responses from 300 compliance professionals in financial companies worldwide, including most of the largest G-SIFIs (global systematically important financial institutions), surveyed banks, asset managers, insurers, and brokers. The survey shows a slight decline in expectations among respondents regarding how much more information regulators will ask for in the next year to 69 percent from 84 percent in 2012), with 26 percent of respondents anticipating demand for ‘significantly more’ information from issuers.