The European Commission’s proposal for a directive on alternative investment funds managers (AIFM) has been met with a barrage of criticism from hedge fund managers, private equity firms and others who will be caught by the new rules.

There have been accusations of protectionism, anti-Anglo-Saxon bias and unnecessary meddling. The proposals are said to be motivated by a deep-seated envy in continental Europe of London’s success, and reference has been made to “ogres in France and Germany”.