Compliance costs have nearly doubled in the past three years, according to a report from the
"Having two regulators is like having to fill out two sets of federal tax returns from two different countries, each with its own rules and requirements and each needing different tax advisers," said Marc Lackritz, SIA president.
The study found that compliance costs have risen from $12 billion annually in 2002 to $25 billion in 2005, with 93% of these costs going toward staff. SIA also said that most of these costs could have been avoided because they went toward duplicate exams, regulations and supervisory actions. In addition, SIA added, many rules are inconsistent or ambiguous and regulators are not always prompt in giving guidance.