Investment firms' compliance spending 'surprisingly low'

The investment management sector's low reported levels of compliance spending are "hard to believe", according to a quarterly survey from the CBI and PwC.

The authors of the latest Confederation of British Industry/PwC Financial Services Survey found the investment industry continues to focus on cost reduction, but spending on regulatory compliance looks "surprisingly low". It said: "No investment manager will be unaffected by the unprecedented wave of new regulatory regimes-domestic and foreign-sweeping towards the industry over the next two years." The survey found investment managers are making some progress with their cost reduction plans, although this means they are one of the few sub-sectors to predict reductions in headcount for...