Investment firms ignoring compliance spend
Investment management houses' spending on compliance is "surprisingly low", according to a quarterly survey by PricewaterhouseCoopers and the Confederation of British Industry.
The report found that the investment industry is focusing on cost reduction but warned that it ignores compliance spend at its peril.
"No investment manager will be unaffected by the unprecedented wave of new regulatory regimes - domestic and foreign - sweeping towards the industry over the next two years," IFAOnline quoted the authors of the report as saying.
According to the survey, investment managers have reported a significant improvement in business sentiment with the majority forecasting growth to continue throughout 2012.
A balance of +85 per cent of investment managers feel confident about their business situation with at least half of those surveyed reporting stronger volumes of business for the past three months.
"Combined with the increasing volumes on business, lower operating costs mean that a strong majority of investment managers see their profitability as being on the increase," the survey said.