Rapid regulatory change requires investment in compliance processes in financial services firms
By 
Ruth Prickett2025-11-20T21:55:00
Geopolitical instability and a general focus on increasing growth and productivity by governments worldwide are causing a slew of regulatory changes in the financial services sector. But most firms are failing to identify potential compliance changes early enough to make meaningful decisions, according to new research by global regulatory intelligence company CUBE.
This leaves a clear gap for compliance to provide regulatory advice earlier and at the highest management levels, according to the Cost of Compliance 2025 report. Compliance managers must help financial services firms to prepare ahead of changes, rather than reacting to them afterwards. Boards need better and faster compliance advice so they can make informed decisions on policy.
The researchers identified specific areas for improvement. They found that although senior executives are now focusing on regulatory change, only 16 percent of compliance managers said they currently report potential regulatory changes directly to the board. The report’s authors said this issue is a longstanding weakness in financial firms’ compliance risk processes.
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