Keeping compliance costs down

Karty Mayne

Changes to regulatory responsibility is causing the cost of compliance in financial services to rise. Data from Deloitte shows that globally, compliance operating costs have increased by 60% in comparison to pre-GFC levels. 

Karty Mayne from Rosewill Consulting says that the rising cost of compliance is not solely due to changes from the regulator.

“The new regulations have been a catalyst for change, but what we have tended to observe is that advisers have been relying on free stuff for a long period of time. But with the change in regime they have had to get fresh documentation which may have been an investment for the first time.”

For Mayne a key way for advisers to keep their costs down is to invest in education.