JHC Systems, a wealth tech firm, has published its latest research report on compliance and regulation in wealth management in the UK.

The report, which takes in "Perspectives, Budgets, Views and Intentions," was compiled in association with Compeer, the wealth management benchmarking firm. It looks at the evolution of the compliance function in terms of spending, headcount and technology, while also dwelling on the evils of constant regulatory change.

Its main revelations are as follow.

• Firms are gearing up for an increase in the number of employees, an updating of processes and a better use of technology – 80% expect the amount of change in 2019 to be high or very high in comparison with 2018.
• Every new rule and regulation can, ultimately, be turned to commercial advantage, with 93% of respondents saying that compliance could be used strategically. This is the first report ever to reveal any such thing, although people have been claiming it for more than 20 years.
• Because many regulatory changes affect the entire enterprise, 50% of the firms that Compeer questioned saw the cost of compliance as a core business cost rather than a department-specific expense.
• 50% of interviewees intend to spend more on risk management in 2018 than they did in 2017, with the Senior Managers and Certification Regime high on the agenda.