Jarkko Syyrilä, director of international relations at the Investment Management Association, says the asset management industry must mobilise itself to face the beginning of a regulatory crisis.
"Running an international asset management business from Europe is made very difficult if not impossible imposing European rules to the whole value chain," he said at an event in Luxembourg today.
"Many provisions are copied from the Ucits Directive but made stricter, which makes no sense as AIFs (alternative investment funds) are funds for professionals."
He added the decision by EU regulators to focus on fund management, and not just the problems with banks, will lead to a clampdown on the way asset management businesses are run and "regulatory overkill with grave consequences".
Syyrilä says "The whole of the European investment management industry is about to pay a very high price for the Madoff incident.
"It is time therefore for the industry to mobilise itself on lobbying the governments, regulators and the European Parliament on these issues to make the new rules workable for the industry as well as for the investors.
"Otherwise let me assure you, your business model of today might not be there tomorrow."
Warns on profits
Hargreave Hale seeking legal advice
Latest news and analysis
First mentioned in Cridland Report