Financial services firms are in a rather tough spot as they wait for Congress to act on the financial regulatory overhaul legislation. It's hard to plan strategically, and it's even harder to budget, I'd imagine, because they don't exactly know what will be expected of them.
According to a survey recently conducted by audit firm KPMG, however, some are doing their best to stay ahead of the game. Compliance Week reports that in a survey of more than 120 C-suite executives of large U.S.-based companies, nearly a third say their company is planning or acting to get ahead of regulatory reform, and 17 percent say they're budgeting more this year to cover regulatory compliance costs.
Specificially, 71 percent of those who are planning ahead are tweaking risk management plans, 24 percent are changing disclosure procedures and 10 percent are adjusting compensation policies.
Not surprisingly, their biggest worry is that the coming reform package will significantly increase compliance costs, followed by a concern that government will be too involved in business. However, as writer Melissa Klein Aguilar points out, nearly half of those responding agree that reform will likely have a "net positive" effect on the industry.