A study commissioned by the Australian Securities and Investments Commissions (ASIC) and the Finance Industry Council of Australia into the cost of compliance has found most people surveyed believe the cost of compliance was high and could be reduced if the quality of the regulatory process were improved.
The study, the results of which were released today, nonetheless found that respondents had a positive attitude towards the notion of regulatory oversight, believing that benefits accrued to both their organisations and the market in general.
It said the main concerns identified by the study were with respect to the poor implementation of some regulation, the belief that some regulation was unnecessary and the difficulty experienced in managing regulatory requirements.
The study said compliance costs were generally accepted and most respondents regarded them as not only inevitable but also integral to maintaining consumer confidence and enhancing business regulation within the financial sector.
“Although compliance costs are perceived to be high, most readily admitted to not having a complete picture of how much their ongoing compliance activities are costing them overall and many perceived little value in doing so given the system to track compliance costs comprehensively would be expensive and would not be able to be used for business purposes,” it said.
ASIC said it would use the findings of the survey to engage in further dialogue with industry.
