Regulatory change, skills shortages and budget constraints are increasing pressure on financial services compliance teams, with firms facing potential shortages in compliance staff, according to a report by Thomson Reuters.
The research shows that, following years of high regulatory activity, three-quarters (74%) of financial services firms expect to see their regulatory burden increase further in the next twelve months, without being able to increase staff numbers to handle the additional work.
Despite an overwhelming majority of firms expecting regulatory activity – and therefore their workloads – to increase next year, most respondents (61%) think their teams will stay the same size. Just over a third (35%) said they expect the size of their compliance teams to grow, with 4% predicting a decrease. In the UK, 65% of firms said they expect compliance teams to stay the same size.
When asked which areas they expected to make the largest demands on compliance resources, the most common answer was assessing cyber resilience (55% of respondents), followed by implementing a demonstrably compliant culture (addressing concerns of regulators) at 47% and post-pandemic reviewing and planning (42%).
Regulatory developments in areas such as crypto-assets, fintech and AI has meant that the remit of compliance functions is growing. As a result, compliance professionals are under pressure to keep up with the pace of change. Compliance teams within financial services firms are also having to contend with the ever-growing threat of cyber attacks, as these become increasingly sophisticated.
Read the full article, here.
Source: Financial Reporter
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