The Telegraph – The cost of regulation affecting the world’s biggest financial firms is likely to almost double by 2010 and was soaring even before the credit crisis, new research indicates.

Regulation and compliance expenditure by the world’s leading 100 financial companies is on track to peak at about £50bn in 2010, says a report by accountancy firm Deloitte. That compares with an estimated expense bill of £28bn last year – up 30pc on the previous three years. The 2010 projection excludes any regulation likely to be triggered by the credit crisis.

Chris Gentle, associate partner and head of research at Deloitte, said that despite the growing bill, companies were not governing risks properly. The imbalance between risks and controls was a "prime feature of the recent losses incurred by major banks", he said.

Compliance costs accounted for 2pc to 11pc of companies’ operating expenses, with larger companies spending on average 4pc, Mr Gentle said. He added that the credit crisis was likely to increase the cost of regulatory compliance over the coming years.

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