Small financial firms are spending more on governance and compliance than their larger counterparts as regulation costs hit record highs, a Deloitte study suggests.
The report says that, despite greater compliance demands, larger institutions spend on average 4% of their total expense base on governance and compliance whereas smaller companies spend 6%. Chris Gentle, head of research at Deloitte, says: “There appears to be a growing and uneven regulatory burden which may act as a competitive disadvantage to smaller financial institutions.” The study, which examined the costs of 100 of the top financial institutions in the world, also found expenditure on regulation and compliance has jumped 30% to £28bn since 2005 and predicts that figure could hit £...
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