Excess regulation 'could make wealth management more difficult'

Wealth management using consumer credit could become more difficult if over-regulation is revealed to be ’burdensome’, according to one industry observer.

Many individuals use financial products, such as store cards and bank loans, for wealth management, but the Finance and Leasing Association today (July 2nd) warns of ’unintended and potentially damaging consequences’ as a result of making rules too stringent.

Corporate and private fiduciary has come under scrutiny since the economic crisis, but too-harsh restrictions on the credit market may push individuals towards unregulated lenders or force them to accept steep repayment conditions, suggests the organisation.

Stephen Sklaroff, director general of the group, will tell conference delegates today: ’If we are to avoid the serious social and economic consequences of a smaller, more polarised consumer credit market, a proper balance needs to be struck between consumer protection and maintaining a competitive market.’

A recent Bank of England credit conditions survey showed household access to secured credit rose slightly over the past three months, as has the availability of lending for corporations.ADNFCR-2318-ID-19871095-ADNFCR