13/01/2010

By Editor, CIR

The next financial crisis will strike within the first half of this decade. That’s according to three quarters of the world’s senior banking and compliance officers polled for a survey by compliance software provider, Complinet, which found that the majority of regulatory experts questioned predicted the next significant economic downturn before 2015. 77% say recent reforms were insufficient to avoid another crash similar to the 2008 collapse.

“The continuing lack of company transparency and accountability to the markets and the public makes the possibility of another crisis almost assured,” said one of the businesses questioned.

The Complinet survey also showed that only 40% thought their firm had changed its approach to compensating employees based on a better understanding of risks associated with the business, and 91% recognised that the current bonus culture is resented by those outside the financial services industry.

But the survey also showed that 6% of senior management believe they’re putting the right controls in place.

“Regulatory reform and implementation of effective compliance solutions are clearly vital to avoid another crash,” says Paul Johns, Vice President of Global Markets at Complinet.

The survey of 232 global compliance officers was made up of 34% from the banking sector, 9% insurance, 32% securities, 7% legal, 18% others.

The Complinet Forgotten Crisis Survey can be found at: http://www.complinet.com/connected/news-and-events/webcasts/tfc/share/survey.pdf

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