The UK's new regulatory 'twin peaks' structure, that will incorporate the Financial Services Authority's (FSA) split into the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) comes into effect in 2013.
In summer 2012, BDO and DLA Piper surveyed more than 350 industry executives from the financial services sector to understand their principle concerns and priorities in relation to the new ‘twin peaks’ regulation model. The research offers significant insight into the views held by UK financial services industry.
The report reveals that despite concerns, the majority of respondents (79%) think the twin peaks regulatory system will result in improved efficiencies and ultimately directly benefit clients. Evidence also suggests that financial services companies underestimate the financial ramifications of the new regulatory regime. Whilst respondents acknowledge that the cost burden of regulation will increase, these costs do not appear to take into account changes to headcount. 59% say there will be no change to headcount in the next 12 months and 20% say no change in headcount in the next 2 years.