The Cost and
Burden of
Compliance
The technology, systems and staff
needed to implement compliance
programs are expensive, and leaders
say the costs are only going up.
According to one survey, 88% of compliance leaders
say costs have risen in the past five years. In another,
53% of CEOs say regulatory changes will significantly
affect their profitability in the next 10 years.
Another cost implication: Compliance takes
professional staff time away from value-added
activities. Consulting firm Oliver Wyman found that
nonrevenue-generating tasks such as compliance
take up approximately half of advisors’ time.
88%
88% of compliance leaders say costs have
risen in the past five years
Regulatory Spotlight:
Online Trading
• In 2022, the Hong Kong Securities and
Futures Commission clarified regulatory
guidance for online brokerages, including
around client due diligence, cross-border
solicitation, and face-to-face and remote
account opening.
• New regulations in Thailand require KYC
for crypto trading.
• South Korea will launch a Virtual
Currency Tracking System in 2023 to
establish sources of funds and combat
money laundering in crypto trading. The
regulation is ranked with gang violence
and drugs as policy priorities.
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Trulioo — White Paper