Third of financial firms penalised for compliance failures in last year

More than a third (36%) of UK financial services firms said they have been penalised at least once in the past 12 months for failing to meet regulatory compliance demands.

New research by Consulting at Davies revealed that when given a list of challenges that businesses are currently facing, regulatory compliance was the second most commonly selected option (43%), just behind economic turbulence (44%).

The survey of 501 senior decision-makers by the consultancy division of Davies also found that almost two thirds (62%) believe that it has become more difficult to keep up to regulatory compliance requirements over the past five years, while 63% said the introduction of Consumer Duty in July 2023 has led to changes in the way they serve customers.

Co-lead for banking and markets EMEA at Davies, Silvia Amoros, said: "The regulatory compliance landscape is constantly evolving, and our research shows just how many businesses in the UK’s financial services industry are struggling to keep pace with the changes taking place. Failure to do so is not only likely to incur significant penalties, but can also bring huge damage to a company’s reputation.

"Ensuring they have the trust of customers and delivering the best possible outcomes to those customers – whether they are consumers or businesses – is fundamental to the success of any financial services firm, and meeting regulatory compliance demands is central to this. For a challenge that is so significant, complex and time-consuming, seeking the support of external experts can be an effective method to ensure the business meets obligations while also freeing up time to allow its team to focus on other core business activities."



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