Focus on Compliance


On average, compliance spending is outpacing growth of net income at the nation's largest financial and thrift institutions.

A Deloitte Center for Banking Solutions survey found that compliance spending as a percentage of net income rose to 3.69% in 2006 from 2.83% in 2002.

Respondents also recognized that compliance is a customer and reputation issue. Three-quarters said they've noticed a burgeoning link between their compliance abilities and their reputation with customers over the past five years and expect the trend to continue.

Other findings included:

n 60% of individuals with the primary responsibility for compliance reported directly to the CEO.

n 40% said time devoted to compliance has increased by more than 25% since 2002.

n 95% measured compliance performance through internal feedback from testing activities and an internal audit. Other popular methodologies included formal and informal meetings with regulators (90%), industry surveys (80%) and quantitative metrics (55%).

For the study, the Deloitte Center for Banking Solutions surveyed chief compliance officers, chief risk officers and other senior executives at 20 of the top 50 domestic financial and thrift institutions.

Source: Navigating the Compliance Labyrinth: The Challenge for Banks, Deloitte & Touche USA LLP, www.deloitte.com.

<% server.execute /pubs/jofa/includes/footer.htm %>

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

QUIZ

News quiz: Scam email plagues tax professionals—again

Even as the IRS reported on success in reducing tax return identity theft in the 2016 season, the Service also warned tax professionals about yet another email phishing scam. See how much you know about recent news with this short quiz.