Monday, 24 October 2016
Last updated 2 days ago
Nov 19 2010 | 8:29am ET
A new survey of financial services industry execs shows there’s doubt on both sides of the Atlantic about the likely effectiveness of regulatory reform measures.
Protiviti, a business consulting and internal audit firm, surveyed over 100 industry representatives, including CEOs, CFOs, COOs, heads of compliance and other executives. A full 97% of respondents said they did not believe new regulatory reform measures will prevent another financial crisis, although half said they will moderate the effects of one.
Most respondents also reported that the actions of regulators will be more important than changes in laws in determining how financial services companies operate.
Moreover, 39% of respondents said regulatory reform will have a negative impact on their organizations’ recovery from the financial crisis (among U.S. respondents, the number was 54% compared to 28% in the UK.)
Just 9% of all survey participants believe regulatory reform will have a positive effect on recovery efforts, while 52% reported there will be no effects.
“While certain aspects of current reform packages are intended to create more proactive regulatory regimes, doubt lingers about the ability to identify developing crises in the future and respond to them in a timely manner,” said Carol Beaumier of Protiviti. "There are also significant concerns about the impact of reform on operations and long-term profitability in the wake of the financial crisis. It will be interesting to observe how—and to what extent—these perceptions and realities change as regulatory reform progresses."