Efama, the European Fund and Asset Management Association, has attacked US regulators for discriminating against European mutual funds under the so-called Volcker Rule, warning that as currently drafted the US reforms could stop banks owning funds businesses that operate in Europe.

Efama said it is worried that the Volcker Rule, or Section 619 of the Dodd-Frank financial-reform regulations, might draw European mutual fund firms into its net unintentionally. The rule is intended to stop banking groups running "risky" proprietary trading, private-equity or hedge funds businesses.