Compliance costs soar to $25.5bn
NEW YORK – The securities industry's compliance costs reached $25.5 billion in 2005, nearly double the $13 billion that broker-dealers paid in compliance-related costs in 2002, according to a survey by the Securities Industry Association (SIA), the US industry trade group.
In 2004, firms spent $23.2 billion on compliance. The majority of the compliance-related spending (94%) is staff-related, while out-of-pocket (direct purchase of legal, auditing and other consulting services from outside providers) accounted for 2.8%. Capital expenditure accounted for 3.3% of compliance spending.
With all the regulators taken into account, each individual firm received an average
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