Over-regulation 'could damage financial sector'

The UK’s finance sector may be undermined by the growing amount of regulation applicable to it, it has been warned.

Speaking ahead of the launch of The Future of Financial Services, a new report from PricewaterhouseCoopers and the Confederation of British Industry (CBI), Chris Jones of the Big Four company observed that London in particular is to face ’significant challenges’ as the global economy shifts to eastern countries.

’Too much or inappropriate regulation or tax will ... have a negative impact on incoming investment to London,’ he explained.

Mr Jones added that private banking services such as hedge funds and equity firms will grow in stature as they seek to ’exploit the niche areas’ in the industry that have been vacated by traditional investment banks.

Earlier this month, economics analyst at Investment and Business News Michael Baxter stated that new rules being introduced by the government could cause companies to leave London and move overseas to more tax-friendly locations.ADNFCR-2318-ID-19567592-ADNFCR