9 in 10 Hong Kong financial bosses challenged by regulatory changes

Here's how they handle new rules.

A new global research report from Robert Half says that the rapidly-evolving regulatory environment is fast becoming a top-of-mind challenge alongside key business priorities which companies have historically placed heavy and almost exclusive emphasis on, such as profitability and costs.

The report also shows that the greatest challenge appears to be in Hong Kong where 96% of respondents within the financial services sector find the regulatory regime challenging to manage.

The Robert Half Financial Services Global Report: Navigating Change in an Evolving Regulatory Landscape report is based on a survey developed by Robert Half, and includes videos and an infographic on the report landing page. It is based on responses from 1,100 Chief Financial Officers (CFOs) and Chief Operating Officers (COOs) from seven major global financial centres – Canada, France, Germany, Hong Kong, Singapore, the United Kingdom (UK) and the United States (US).

Compared to 35% of companies globally, 46% of Hong Kong respondents are expecting to increase in their budget, including capital expenditure and labour costs over the next 12 months as a result of regulatory changes.

When asked which department is taking the lead on managing regulatory change, 39% of Hong Kong companies said finance, 15% said compliance, and 13% said technology.

In addition, regulatory change is having direct impact on workloads. Globally, two-thirds (66%) of respondents anticipate rising workloads as a result of regulatory change.

In Hong Kong, nearly three in four Hong Kong respondents (72%) report that regulation has increased the day-to-day financial workload for financial services companies. To manage and accommodate the additional regulatory workload, 43% of Hong Kong companies will hire contract or interim staff, and one in four (23%) will add to their permanent headcount.