The European Commission's plan to regulate hedge funds and private equity groups could cost asset managers up to €22bn ($33bn) in one-off charges and almost €4bn of annual charges, an influential report has said.

The European Parliament's directorate general for internal policies gave its prediction in its impact assessment of the EC's proposed Alternative Investment Fund Managers' Directive. It also said the directive will reduce economic growth in the EU by up to 20 basis points a year.