Compliance 'chokes' asset management sector

Consumers will be offered a more restricted choice of asset managers in future because the 'vast and growing' legal and compliance costs are restricting growth in the sector, according to the New City Initiative think tank.

08 December 2014

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Research from the think tank shows that the number of compliance officers has doubled to 2,075 over the last 13 years. In that period, by contrast, the number of asset management staff has fallen by 8,500 to just under 37,400. Dominic Johnson, chair of the think tank, said: 'Compliance has become the new ‘priesthood’ of financial services. Punishment for failure to comply can be so financially crippling that exceeding minimum requirements is now de rigueur.' Source: Financial Times