"The particular problem with the draft directive [...] is that it is written in such an unclear way that it is open to ambiguous interpretation," said the Alternative Investment Management Association (AIMA).
"Implementation in its current form could prove to be unworkable. It also appears to be in conflict with existing financial services directives," said AIMA, which represents more than 1,200 hedge fund firms worldwide.
The industry group has already attacked the EU's regulatory drive and said last month it was frustrated by the "baffling" volume of political rhetoric relating to hedge funds.
The European Commission's proposals would make it mandatory for hedge funds to register and disclose information on leverage to supervisors if they want to operate in the European Union.
AIMA said it would oppose any measure that in its eyes would be punitive, reduce competitiveness and increase unemployment. "It is extraordinary that at a time of economic crisis, the Commission is contemplating putting jobs at risk and hitting investors and thus investment," it said.
"Much of the directive is unnecessary and by creating an extra layer of bureaucracy imposes significant burdens and costs without adding value."
(EurActiv with Reuters.)
