Standard Life Investments says consumers need to be aware that increased regulation could lead to adverse consequences.
Since the financial crisis, consumers have been calling for tighter regulation but the firm feels this is not always beneficial.
In the firm's latest 'Global Outlook' report, Mike Everett, governance and stewardship director, said he was expecting a "tsunami" of legislative changes.
He said: "It is important to be aware of the impact of unintended consequences arising from legislative change. For example, requiring higher levels of bank capital run counter to call for banks to lend more to hard-pressed consumers and businesses.
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"Secondly, the downside for long-term investors such as pension funds, is that regulation could dampen the future reforms from their holdings.
"For firms, meeting regulatory requirements also increases their cost base and hence reduces profitability."
He suggested increased interaction between owners, managers and investee companies was welcome to ensure that all parties were consulted.
Mr Everett said: "The current situation also offers opportunities for financial firms to demonstrate they have a role to play in seeking solutions to the current economic challenges."
He said Standard Life Investments would be consulting on the various options available for audit and corporate governance reform.

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