Half of all senior compliance professionals at financial services firms are expecting their compliance costs to rise by 20 per cent under the new 'twin peaks' regime, according to Protiviti.
The global consulting firm found firms were concerned about the impact the new regulatory regime would have on their business.
This new dual regulatory regime of the Financial Conduct Authority and Prudential Regulatory Authority will come into force in early-to-mid 2013.
The FCA will be responsible for consumer issues and business regulation while the PRA will focus on prudential supervision of financial institutions.
However, just 17 per cent of compliance professionals said their firm was 'completely prepared' for the different reporting demands and processes of the new structure.

Some 63 per cent said they were 'partially prepared' while 13 per cent said they are only starting to prepare now.
Two thirds said they did not believe the new structure would be effective in preventing a financial crisis and 62 per cent said it would make the UK a less attractive place for business.
Bernadine Reese, managing director of Protiviti, said: "There is clearly a great deal of concern among financial services institutions around the new regime being initiated in early 2013. The changes being made to the UK financial regulation are substantial and radical yet the concern is that many firms remain unprepared."