11 May 2016 | 01:57 pm | 1 min. read
Findings indicate in house compliance teams keen to innovate in face of regulatory explosion but lack resources
Compliance professionals are increasingly keen to innovate in face of a rising tide of regulation but lack the necessary resources to do so, according to new research commissioned by Pinsent Masons.
In a survey of 100 London-based senior compliance professionals, over half said that they were not budgeting for innovation and technology in respect of compliance solutions. 92% said that they rely on compliance processes that are either partially or entirely manually administered.
Regulatory compliance experts at Pinsent Masons say that the results are striking given the increasing focus on regulatory matters at Board level, and the increasing level of spend on compliance. The firm highlights that:
Despite the increasing cost and risks associated with inconsistent application of compliance processes, few have the resources to fully embrace the potential of technology to revolutionise compliance practices. While a third of those surveyed indicated a desire to innovate to meet the compliance challenge, 53% of respondents reported having no budget allocation to do so.
Tom Stocker, a Partner and regulatory specialist at Pinsent Masons says,
“Businesses’ compliance budgets look set to keep on spiralling unless there is a change in mindset. The worry is that some sectors are already creaking under the weight of regulatory costs and that acts as a drag on profitability.”
“There is still a tendency in some quarters to think more regulation equates to a need for more bodies. It's only a matter of time before Finance Directors - and even shareholders - start to question that. Businesses need to think more creatively about ways to become more efficient and effective in their compliance processes if they are to keep costs down and drive performance standards up.”
“Greater innovation - from the use of automated services or integrated online platforms to more flexible advisory arrangements - are likely to be a focus of investment for many businesses of scale in future. However, there is a recognition that there will need to be partnership and collaboration with external parties to achieve that.”
In 2013 Pinsent Masons launched a joint venture with IT consultancy Campbell Nash to develop Cerico , which advises on the design and build of online compliance solutions to complex regulatory needs.
The Pinsent Masons report was developed in conjunction with Legal Week Intelligence.
International law firm Pinsent Masons has advised China Education on the AU$128m acquisition of King's Own Institute in Australia.
International law firm Pinsent Masons has advised Ebbsfleet Development Corporation (EDC) on the acquisition of land from Ebbsfleet Investment GP Limited for a landmark regeneration project.
There was a 10% rise in the average prison sentence length for tax evasion last year jumping to 2 years 7 months*, up from 2 years 5 months, says Pinsent Masons, the international law firm.
- Prosecutions of most serious cases double in a year - Company directors face threat of jail and multimillion fines as new regime kicks in - Companies also facing increased used of ‘adverse publicity orders’
International law firm Pinsent Masons has appointed leading litigator Bruce Craig to join its 30-strong oil and gas team in Aberdeen.
• 18% increase in inspections following tip-offs from whistleblowers and the public The Health and Safety Executive has increased the number of inspectionscarried out, as a result of tip-offs against businesses, by almost a fifth since last year, says Pinsent Masons, the international law firm.
For all media enquiries, including arranging an interview with one of our spokespeople, please contact the press office on