The fifth annual Global Regulatory Outlook paper found just 10% of those questioned believed changes to regulation have reduced the likelihood of a further financial crash and only 23% thought industry watchdogs have created “effective global regulatory frameworks”.
A third (33%) did not believe the safeguards introduced by regulators would prevent a future crisis, with just 55% agreeing the risk had been partly addressed.
In fact, of the 200 professionals involved in the research, 17% felt regulation had made the financial services less stable, with a further 35% reporting it had had little or no impact.
Julian Korek, global head of compliance and regulatory consulting at Duff and Phelps, said more needed to be done to build a resilient banking and investment industry.
“More needs to be done to build stability in financial services and ensure the system is resilient in future for both banks and the alternative investment industry.
“Even now, a decade on, most people in the financial services sector are not confident that the risks that caused the crisis have really been managed,” he said.
“The major regulatory bodies have been very clear about future areas of focus and concern, but the fact that so many think there is potential for another crash is worrying – even without Trump or Brexit potentially taking the market down a quite different regulatory path.”
Despite the pessimistic view of regulators’ effectiveness in building safeguards, 42% of the industry questioned did say that regulations have helped cement investor confidence and 57% believed they were getting better at collaborating and coordinating across borders.
