The costs of regulatory compliance could rise by 20% next year after the FSA is split into two new bodies, the Prudential Regulation Authority and the Financial Conduct Authority.
The finding comes in a survey by global business consulting firm Protiviti.
It found that half of senior financial services compliance professionals expect their company’s costs to rise.
Two thirds also do not believe the new system will prevent a repeat of the financial crisis and some say the new regime will make the UK less attractive as a place to do business, according to the paper.
Only 17% of respondents believe their firm is ready for the new structure, while 63% are partially prepared and 13% are just starting their preparations.
Bernadine Reese, managing director of Protiviti UK, said: “The changes being made to UK financial regulation are substantial and radical, yet the concern is that many firms remain unprepared.”
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