Regulation stunting business growth, warn accountants
Increasing regulation is hindering businesses' ability to get on with the job at hand, according to an IFAC survey of accountants
BUSINESSES across the globe are being stunted by too much regulation, according to a study of accounting, finance and business professionals.
Two-thirds of the 300 respondents to IFAC’s survey said regulation was having a significant, or very significant, impact on their company’s ability to grow and innovate.
IFAC’s Global Regulation Survey also finds that the amount of regulation has increased over the past five years, and is adversely affecting the cost of doing business.
“Good regulation is essential to the fairness, efficiency and effectiveness of economies, and making it work as well as it can is a never-ending mission,” said IFAC chief executive officer Fayez Choudhury (pictured).
“Growth remains a concern globally, and these results should be a wakeup call for us to examine the impact of regulation, including the regulation and reform introduced in response to the global financial crisis.
“For many organisations, Basel III, recent EU reforms, Dodd-Frank and multiple other sector- and country-specific regulations are all coming into play at once, and the scope of each is substantial.”