Financial executives in the UK think disclosure and reporting requirements are among the top three global regulations with the biggest effect on businesses, according to a survey by recruitment consultancy Robert Half Financial Services.
The survey asked 200 financial executives what global regulations have the greatest impact on their activity and 35% of them pointed to disclosure and reporting requirements as the most influential.
Some 13% mentioned IFRS compliance while 5% referred to the mandatory requirements for financial reporting on the back of the Sarbanes-Oxley Act (SOX), Japan SOX or something similar as the areas with the most profound impression on their businesses.
The survey also found that the vast majority of financial executives believe a harmonised regulatory environment is needed either globally (88%), across the Eurozone (92%) or within the European Union (93%).
As a consequence the survey found there has been a rise in compliance budgets. In order to ensure that their organisations are compliant with different regulations, more than half of the executive surveyed (53%) said their expenditure grew in the last four years.
“We have noticed a significant increase in demand from organisations to bring the right talent on board to help them stay ahead of the regulation tsumani and that is driving up costs,” Robert Half Financial Services global practice director Neil Owen said.
“Some companies are bringing on permanent senior professionals; others are turning to seasoned project regulatory specialists with the requisite knowledge and experience to oversee key initiatives. It’s not surprising that so many financial executives believe it is important to harmonise all of these areas of regulatory compliance, which has become such a huge element of their day-to-day role and that is driving up costs for the majority of businesses.”