Financial regulations have become the modern day Frankenstein’s monster
Financial companies in Asia are spent US$50m last year in an effort to keep up with shifting regulations, according to Thomson Reuters
New financial regulations, as frequent as every 10 minutes on a worldwide basis, added US$50 million to the compliance costs of financial companies in Asia last year, according to data of Thomson Reuters.
Sanjeev Chatrath, managing director of Asia Pacific and Japan of financial and risk of Thomson Reuters, said in the early days tracking regulatory changes meant 100 regulators worldwide and about 10 changes a day.
“Last year, we were tracking 600 regulator making 50,000 regulatory rule changes annually. This is more than one change every 10 minutes. In Asia, there are 53 regulatory change every day,” he said in an interview with the Post in Central.
The regulatory avalanche has its origins in domestic, international and cross-border policy to address volatile markets. Fintech, which refers to financial firms using technology to do their business in a more efficient way, is another growth areas for new regulation.
Chatrath said compliance costs in Asia increased to US$50 million last year, a 20 per cent rise from 2014.