New proposals for the implementation of the Volcker rule, part of the US Dodd-Frank Act, would have a devastating impact on the mainstream asset management industry, because the definitions have been drawn so broadly that every investment vehicle, apart from US mutual funds, is included.

ICI Global, a trade association for the asset management industry worldwide, has begun warning asset managers of the gravity of the proposals, issued last month by four US regulatory agencies: the Department of the Treasury, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Securities and Exchange Commission.