While the vast majority of senior executives remainconcerned about the impact financial regulatory reform will have on theircompanies, half indicated a sweeping revamp could eventually be a "netpositive" according to survey from Big Four firm KPMG.

KPMG, which polled 126 C-Suite executives, primarily fromFortune 1000 companies, found nearly all executives (94 percent) expressedconcern about the impact that reform legislation could have on their business,with one quarter of them indicating they were "extremely"concerned.

Despite their concerns about the impact of reform, nearlyhalf (49 percent) surveyed believed that financial reform has the potential tobe a "net positive" for their business, depending on what form thelegislation takes.

The view that reform could be a "net positive"was similar among executives in financial services (52 percent) and health care(47 percent).

"A perception among these top executives thatreforms are potentially a net positive suggests an acceptance that the oldrules are out and a new playbook is coming from Congress," said HenryKeizer, vice chair of audit for KPMG LLP."It's likely this is an acknowledgement that some amount ofregulatory reform is appropriate to further restore trust in the financialsystem."

When asked if increased regulation could help avoidanother financial crisis, 59 percent of overall respondents said it could be atleast "somewhat effective" - although only 2 percent thought it wouldbe "extremely effective" and 9 percent said "veryeffective."More than half(56 percent) of the financial service executives agreed increased regulationcould be at least "somewhat effective."

Overall, 77 percent of the survey respondents believedthere will be regulatory reform in financial services and 96 percent of theexecutives surveyed in that sector agreed. However, 92 percent of therespondents did not believe regulatory reform will stop with financialservices.

About 60 percent of the respondents in the KPMG pollrepresent Fortune 1000 companies and about 80 percent of respondents representcompanies with annual revenues exceeding $1 billion.

 

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access