Regulators worldwide issued more than 14,000 regulatory announcements in 2011, up 16% over 2010 -- and the number will likely rise again in 2012, a new report finds.
The 14,215 regulations announced worldwide in 2011 amounted to about 60 regulatory changes per workday, according to the "State of Regulatory Reform 2012" report by Thomson Reuters Governance, Risk & Compliance.
Global businesses are struggling to keep up with the regulations which affect companies' bottom lines and the global economic recovery, the report states.
More regulations means corporate compliance spending "is bound to rise," said Scott McCleskey, global head of financial services regulation for Thomson Reuters GRC. That will leave companies with "less to lend, invest, and do other core activities which will be necessary to revive the global economy."
Most of the regulations (57%) came from the United States, the State of Regulatory Reform report found. Europe accounted for 22%, and Asia 15%, of worldwide regulations in 2011.
Among the world's most active regulators: the Financial Services Authority (FSA) and the Securities and Exchange Commission (SEC). But companies shouldn't focus solely on these two agencies, or risk missing important new regulations from other sources, McCleskey said.
Don't expect the pace of new regulations to slow down anytime soon, either. When financial regulatory reforms required by the Dodd-Frank Act are completed, companies may be forced to implement several major rule changes at once, the report says.
The State of Regulatory Reform 2012 summarizes the effects of Dodd-Frank and other key regulatory developments worldwide. It also highlights global "hot spots" and regulations to watch out for in 2012 and beyond. You can download the report at the Thomson Reuters Accelus website.
[Note: FindLaw is a Thomson Reuters business.]
- Special Report: The State of Regulatory Reform (Thomson Reuters Accelus)
- Compliance Information and Resources: State Guide (FindLaw)
- Business Regulations (FindLaw)
- New Dodd-Frank Act Creates Important Rights for Whistleblowers (FindLaw)