Regulations making things tough
Increasing regulation is making it tougher and more expensive to do business on an international basis, according to a new global survey.
The survey, the results of which have been released this week, found that the sheer volume of regulation and the complexity of the international regulatory environment had made the management of regulatory risk one of the most pressing concerns for global businesses ahead of natural disasters, terrorism and other operating risks.
The findings are based on a survey of senior executives conducted by the Economist Intelligence Unit and co-sponsored by the ACE Group of Companies.
And according to the ACE Group, the impact of the worldwide credit crisis can be expected to have a further impact, with new and more stringent regulation for organisations in the financial services sector.
The survey covered 320 senior professionals with responsibility for risk and found that while the majority recognised that regulation was a necessary part of the economic landscape, they also believed it posed serious challenges for their businesses in terms of managing the risks associated with compliance.
Commenting on the survey findings, ACE overseas general chief executive John Keogh said it showed that while regulation to protect the interests of business, the consumer and global economies was fundamental and could have a positive impact on business if managed effectively, the growing burden and complexity of compliance requirements is now a major business issue.
“More than ever, it is crucial that global regulatory systems work well and work together and businesses need to look carefully at the resources and processes they have in place to better manage regulatory compliance,” he said.
AUTHOR
Mike Taylor
Recommended for you
AZ NGA has entered into a strategic partnership with national advice firm MiQ Private Wealth, as a way to provide a succession solution, as well as career development opportunities for staff.
While the advice profession struggles under growing operating costs, Adviser Ratings has found more than half of practices – some 58 per cent – that generate less than $250,000 in revenue report no profit at all.
The Federal Court has ordered the freezing of assets and the appointment of receivers to two entities linked to Australian Fiduciaries, ASIC’s latest move in an ongoing investigation into the company’s managed investment schemes.
Off the back of the August adviser exam results, the profession has seen 17 new entrants hit the Financial Adviser Register (FAR) this week, helping numbers return to positive territory.
