General Insurance Article - Upcoming regulatory structure in UK gets cool reception

 50% of senior compliance professionals at financial services firms warn that their company’s costs of compliance will increase by up to 20% under the UK’s new ‘dual’ regulatory regime, which is due to start in early-to-mid 2013.

 According to a survey by Protiviti, the global consulting firm, over one in ten (13%) anticipate a rise of over 20%.

 Other key findings from the survey include:

 
•   67% of respondents in the survey felt that the system (PRA and FCA) would ‘not’ or ‘probably not’ be effective in preventing a future financial crisis
 
•   Only 17% of respondents said their firm is ‘completely’ prepared for the different reporting demands and processes of the new UK regulatory reporting structure
 
•   Only 63% said they are ‘partially’ prepared, while 13% admit they are ‘only starting to prepare now’
 
•   Such is the level of concern around the changes to UK regulation that 62% of respondents stated that the regime will make the UK less attractive as a place to carry out business
 
•   Only 7% said that it will make the UK a better place to conduct business, while one-third (31%) anticipate no change.