For the first time ever, we asked customer-owned institutions to provide real data on the cost of compliance in anticipation of potential regulatory change once the Hayne Royal Commission delivers its final report in February 2019.
Our research found that the cost of compliance is steadily increasing with each additional regulation or requirement. The baseline cost of doing business and meeting the minimum requirements is not proportionate to the size and complexity of Australian entities and it seems as more regulation is added, the more the smaller entities will be ‘squeezed’ out.”
Based on the survey, the key areas of concern for executives of smaller institutions included:
- overall increasing cost of compliance
- changes in IT and system requirements
- increased reporting
- Increased regulatory scrutiny
This is the second part of our investigation into proportionate regulation. Our first paper, ‘The case for proportionate regulation’ can be found here.