Research into additional compliance costs forced by new rules being introduced on M-Day at the end of the month has been published by consultant Huntswood.
Its figures suggest 75% of lenders have seen compliance costs increase on average by 59%.
Ongoing costs are expected to increase by an average of 26%, according to more than 8-in-10 lenders.
Some 90% of the 30 lenders surveyed said they seconded staff from other departments to deal with the preparations for M-Day, while nearly all shifted more than half their senior management into dealing with the preparation projects.
Huntswood says while most lenders agree with the benefits of increased regulation, many are troubled by the timing, which has forced resources to be redirected in the midst of a property boom.
The effect will be felt on the bottom line, the consultant adds.IFAonline
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