Coping with Compliance
Stockholm/Brussels, January 31, 2018
Compliance leads to growing pressure on finance employees, forcing them to choose between providing good customer service and following rules and regulation. This is evidenced by a new survey on the effects of regulatory requirements on employees’ work and wellbeing from Nordic Financial Unions (NFU).
EU legislation has a profound impact on the Nordic financial sectors. The new NFU report “Coping with Compliance” gives a perspective from inside the sector and sheds a light on how finance employees and consumers seeking financial advice and services are affected by compliance demands stemming from EU legislation.
According to the respondents, representing over 35 000 Nordic finance employees, the regulatory requirements on documentation, information to consumers and Know your customers (KYC) have increased in the last 2 years. Consequences for the employees is heavier workload and stress levels. Over 80% respectively over 75% of the respondents state this.
– Finance employees want to focus on providing services that bring value to customers rather than spending hours on administrative tasks that appear pointless. Sufficient time and resources is a precondition for employees to do a good job. This is also key to build trust to the financial sectors, says Michael Budolfsen, President of NFU.
While a strong regulatory framework is needed to safeguard stable financial sectors, the many detailed requirements risk creating conflicts of interest between providing good customer service and following rules and regulation. The result also questions whether the rules live up to the legislators’ original intention; to improve consumers understanding of financial products, increase the quality of financial advice and support over-all financial stability.
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