The majority of UK financial institutions are failing to achieve regulatory compliance, according to a report by PricewaterhouseCoopers (PwC).
The study, entitled `Compliance: A gap at the heart of risk management', found that fewer than a quarter of participants were "very confident" with their businesses' regulatory proceedures. However only 36% felt a dedicated compliance officer would help their business achieve compliance.
The study also found that 53% of non-compliant businesses are concerned that they are leaving themselves vulnerable to reputational damage.
Juan Pujadas, head of PwC's global financial risk management practice said: "A new vision is needed to bridge this gap, one that puts the consumer first, that embraces internal guidelines as well as outside regulations, that prevents damage to the franchise rather than just detecting it after the damage is done, and that embeds a culture of compliance into the marrow of financial institutions.
"The change necessary to transform compliance requires a major cultural shift at all levels of an organisation, starting from the very top."
