The regulatory cost burden for the financial services industry has been forecast to almost double by 2010
Accountancy Age, 14 May 2008
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.
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