Tougher regulations for payday lenders could impact the firms’ ability to raise funds, say market observers, following the Financial Conduct Authority's announcement of plans to introduce new rules when it takes over regulation of the sector next year.

Wonga, the most high-profile of the payday lenders, has long been rumoured to be eyeing an initial public offering, although a spokeswoman for the lender told Financial News last month it has "no imminent plans" to list and is "well-funded".