American credit unions aren’t alone in feeling overwhelmed by regulatory demands.
According to survey results released this week across the pond, compliance officers in Great Britain said the flow of paperwork is so heavy that it’s weakening compliance rather than strengthening safeguards.
The survey by the Chartered Institute for Securities & Investment, a London-based membership society for finance professionals, garnered an 88% positive response to this statement: “The volume of Financial Services Authority material with which I have to keep up to date is a serious drain on the compliance resource within my firm.”
A CISI compliance panel said the FSA governing body issued 111 documents totaling 1,929 pages between Jan. 1 and March 16 this year, including discussion and consultation papers, policy statements, enforcement notices, speeches and public announcements.
“Part of the problem is that firms feel compelled to read almost everything produced by the FSA,” said Julian Sampson, the panel chairman and a consultant with Fulcrum Compliance. The CISI is now urging the FSA to “reduce what has clearly become a counterproductive burden” by, for starters, improving the priority rating system of the documents it issues.
Another recommendation in the CISI press release: “The FSA should stop or limit its practice of issuing press releases. Regulated firms are well able to review material without the need for press releases.”