BANKS and other financial services firms had to deal with 60 regulatory changes each working day during 2011, according to a report from Thomson Reuters Governance, Risk & Compliance.
Regulators around the world announced 14,215 changes in 2011, a 16 per cent increase from the 12,179 announcements in 2010.
The report shows that the majority of regulatory activity, 57 per cent, came from the US, while the UK and rest of Europe made up 22 per cent and Asia accounted for 15 per cent.
The volume of announcements, which can include anything from a speech which may signal the direction of a new regulation to a final binding rule, has grown continuously since 2008 when regulators issued 8,704 changes.
The firm warn that the level of announcements will increase even more during 2012 as governments tighten regulation and new directives, including those related to the US Dodd-Frank act, are implemented.
Scott McCleskey, head of financial services regulation at the GRC unit, said: “This growth in activity also has an effect on the level of compliance spending leaving less to lend, invest, and do the other core activities which will be necessary to revive the global economy.”
Michael Wainwright, partner at Eversheds law firm, said: “Businesses are keen to see the future course of banking regulation resolved as soon as possible, so that the banks can get back to business with a clear view of the ground rules under which they will operate.”
