A new report has been launched showing that more than three-quarters – 76% – of UK businesses, including estate agencies, feel that regulatory changes are hindering their expansion.
The study sheds light on how regulated businesses across the finance, property, legal, and accounting sectors are struggling to meet increasingly complex compliance demands, amid soaring financial crime.
SmartSearch, which compiled the report, says that financial crime is costing the UK around £100bn a year, and leading to very real-world problems, such as human-trafficking, money laundering, and the sale of drugs. In response to this, regulators across industries are understandably working to keep pace.
The research found that while regulations play a critical role in combating increasingly sophisticated criminal activity, many businesses are finding it challenging to navigate the growing complexity. As regulatory demands expand, surveyed firms report difficulty managing compliance effectively, due in part to a reluctance to embrace digital solutions.
The report shows that amid an increasingly complex regulatory landscape, nearly three-quarters (73%) of businesses are concerned about their ability to stay compliant, with almost a third (30%) admitting fears about the next 12 months.
Using insights from over 600 senior decision makers working in finance, property, legal, and accounting businesses in the UK, the study focuses on five key areas: crime, confidence, challenges, complexity, and cost.
Key findings include:
+ Almost a third (31%) of businesses listed financial crime as a key factor hindering the UK’s economic growth, highlighting the importance of regulations.
+ However, more than three-quarters (76%) of organisations feel that regulatory changes are hindering their own businesses’ expansion.
+ 72% of regulated companies feel overwhelmed by ongoing anti-financial crime compliance demands and 89% find current regulations challenging to navigate.
+ 73% of businesses say they lack confidence in their ability to stay compliant with current regulations, and almost a third (30%) expect pressures to increase over the next 12 months.
+ Given concerns around growth and a lack of confidence in staying compliant, it may be necessary to look at current frameworks to ensure that they strike a balance between protection and growth.
Almost a third (31%) of businesses listed financial crime as a key factor hindering the UK’s economic growth, highlighting the importance of regulations. However, given concerns around growth and a lack of confidence in staying compliant, it may be necessary to look at current frameworks to ensure that they strike a balance between protection and growth.
Phil Cotter, CEO, SmartSearch, said: “The compliance forecast offers us an outlook on the substantial challenges regulated businesses face in an increasingly complex landscape. With financial crime costing the UK up to £100bn a year, strong regulation is essential. But, as it becomes increasingly complex in order to keep pace with criminals, businesses must respond accordingly to ensure they are able to grow and continue to deliver excellent customer service.”
“Adopting a proactive, digital-first strategy offers businesses a streamlined compliance process, reduced costs, and enhanced customer experiences. Organisations that have embraced these solutions are better equipped to navigate evolving regulations and mitigate risks.”
Are you familiar with the latest market regulation and compliance for agents?
Read the orginal article: https://propertyindustryeye.com/agency-growth-stunted-by-regulatory-changes-says-industry-report/
