Cost of compliance staff set to rise

An increase in demand and mounting volumes of regulatory requirements expected to push staffing costs up.

A poll of 300 global financial institutions has found 60% of the industry expects the cost of compliance staff to rise over the course of the next year.

The recent study, authored by Thomson Reuters, also found that 67% of financial professionals expect senior compliance staff to cost more this year.

Of those, 84% said the reason for this is due to an increase in demand for skilled staff and knowledge, as 59% blamed the mounting volume of regulatory requirements.

European’s MiFID II regulation was cited as one of the most time-consuming legislative texts, with thousands of pages published covering everything from complaint handling to best execution, the survey said.

Reuters explained: “One of the major challenges firms face is the continued scarcity of skilled compliance personnel, forcing firms to do more with less and putting a focus on the development of existing staff.”

The report added that the “lack of good compliance skills” has driven up the costs of senior compliance specialists, making it harder for firms to continue hiring ever more compliance staff.