Regulators are reported to be considering curbs on wealth management funds
investing in consumer‑finance ABS issued by trust companies. Multiple trust
executives say they have not received a formal regulatory order but are feeling
a sustained tightening of compliance requirements; practical compliance
thresholds for consumer‑finance trust business have risen and some institutions
are proactively trimming exposure. Several trusts say they have already
conducted internal risk reviews. Wealth managers report no official notice and
say related business remains normal. Firms say, should restrictions be imposed,
they would seek a transitional buffer to avoid adverse market feedback from a
sudden change in expectations.
