In an annual survey from industry body the Investment Management Association (IMA), UK asset managers, chief executives, chief investment officers and chairmen said the move was motivated by pre-existing hostility to certain parts of the wider asset management industry.
"The majority of firms interviewed said the [directive] was a questionable piece of legislation…and risks having a disproportionately and damaging impact across the asset management industry, and for its clients," the IMA said.
The IMA's chief executive Richard Saunders said: "The asset management industry is clear there should be no return to the status quo as it existed before the crisis, but equally clear that regulation must target the root causes of the crisis and not demonise the financial services sector as a whole."
He added that it was dispiriting that the response to a banking crisis has been a fund management directive.
"At the most basic level, it is crucial that policymakers draw careful distinction between asset managers, who act firmly in the interests of their retail and institutional clients, and the own-account trading activities of investment banks," he said.
IMA funds with biggest exposure to alternative assets, 1-yr
Source: Financial Express Analytics
The survey also revealed there is a growing concern amongst asset managers about the UK as a place to do business. Those interviewed, who manage over £2trn in the UK, called for a more stable operating environment in the UK.
"[Managers] indicate that a lack of certainty around taxation and immigration policy could force some firms to relocate existing facilities to rival international financial centres and focus future expansion plans outside the UK," the IMA’s study said.
However, the body found reason to be optimistic on the future of the UK as a business centre, too.
"Asset managers still rate the UK's investment infrastructure and reputation as a premier league financial services centre. They are not about to up sticks, but there is certainly more restiveness about the UK this year than last, with particular unease around the impact of tax and immigration policy," Saunders added.