Companies struggling with 'scope and complexity' of financial regulations, says survey

Influx of EU and Irish regulations regarded as biggest compliance challenge in 2025

Financial companies are struggling to manage “the sheer scope and complexity” of Irish and EU regulations, a study released on Tuesday said.

Financial companies are struggling to manage “the sheer scope and complexity” of Irish and EU regulations, a study released on Tuesday said, with almost eight in 10 firms in the sector calling for clearer guidance from regulators.

Nearly six in 10 organisations in Ireland’s financial sector who responded to the Compliance Institute Survey 2025 said a continuous influx of EU and Irish regulations was their biggest compliance challenge in 2025.

“It is abundantly clear that the overwhelming volume and pace of regulatory changes is putting significant pressure on compliance teams,” said Compliance Institute chief executive Michael Kavanagh.

“Many organisations are struggling to keep pace with these changes, compounded by finite resources and, in some cases, a shortage of suitably qualified staff. The sheer breadth of regulations demands a significant allocation of time, expertise, and operational focus, stretching teams to their limits.” 

 The Compliance Institute survey gathered responses from 150 senior-level compliance experts across Irish financial services organisations. The top five compliance challenges facing the Irish financial sector were: keeping up regulatory frameworks (58%); ensuring compliance with the Digital Operational Resilience Act (43%); managing cybersecurity threats and cybercrime risks (37%), navigating artificial intelligence (AI) governance and regulatory compliance (35%); and resourcing for the compliance team/department (32%).

“The attention respondents are placing on the Digital Operational Resilience Act and cybersecurity threats indicates that firms are prioritising resilience against digital disruptions and cyber risks,” said Mr Kavanagh. “With cybercrime becoming more sophisticated, compliance professionals see regulatory adherence as a critical defence strategy. Cybercrime is developing and advancing at a pace so fast that organisations and legislators often cannot keep up.” 

 Some 35% of organisations see AI governance as a major compliance challenge. “Organisations may be struggling to interpret upcoming AI regulations and to ensure responsible AI deployment. AI is a very new technology but it has developed at a pace which has taken many people by surprise,” noted Mr Kavanagh.

The survey also asked respondents what resources would best help address compliance challenges this year. Clearer guidance and coordination from regulators (77%) was proposed by respondents, with 70% seeking specialised training and development. Almost half (46%) called for increased funding or resources for the sector.

“This reinforces concerns that compliance teams may be stretched to their limits and suggests the increasing complexity of compliance requirements may be stretching teams to their limits, requiring additional investment in personnel, technology, and external expertise,” said Mr Kavanagh.

“The survey highlights a strong need for clearer regulatory guidance, increased training, and better resourcing to help compliance professionals navigate 2025’s challenges. While technology plays a role, human expertise, cross-functional collaboration, and regulatory clarity remain the most pressing needs for compliance teams.”