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Regulatory compliance: A workforce perspective

Regulatory compliance: A workforce perspective

​​​​​​​- Nordic Financial Unions report explores workforce perspective on regulatory compliance 

​- Demonstrates need for proportional approach to bank rule

>> See story in latest News & Views​​​

​>> Related: Report insights: Nordic Financial Union's Budolfsen​​​

The following story is featured in the latest News & Views magazine.

BRUSSELS, 16 August 2018​

Compliance leads to growing pressure on finance employees, forcing them to choose between providing good customer service and following rules and regulation, a recently released report by the Nordic Financial Unions (NFU) shows. The conclusions are based analysis of results of a new NFU survey on the effects of regulatory requirements on employees’ work and wellbeing. 

Titled “Coping with Compliance”, the report gives further insight into how EU legislation has a profound impact on the Nordic financial sectors. It gives a perspective from inside the sector and sheds 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 two years. Consequences for the employees are a heavier workload, which more than 80% of survey respondents observed, as well as increased stress levels according to three-fourths of those same respondents. 

“Finance employees want to focus on providing services that bring value to customers rather than spending hours on administrative tasks that appear pointless,” says NFU President Michael Budolfsen. “Sufficient time and resources are preconditions for employees to do a good job. This is also key to build trust in the financial sectors.” 

The NFU report concludes from the results that 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. Results also question 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​.​