The cost to the hedge fund and private equity industries of proposed regulations unveiled last week by the European Commission is likely to be significantly less than feared and only a fraction – possibly less than 1% – of the fees individual firms can expect to earn, according to analysis by Financial News.

The draft directive on alternative investment fund managers proposed a regime of higher disclosure and transparency for hedge funds with more than €100m ($133m) in assets, private equity firms with €500m under management, and portfolio companies with sales of more than €50m.