KENNY Jackett expects a loophole that has allowed Watford to make 12 loan signings from their foreign sister clubs this season to be closed.
The Hornets were last summer taken over by the Pozzo family, who own Udinese and Granada, and subsequently raided their squads for players in need of competitive experience.
20-year-old forward Matej Vydra, for instance, had made only two appearances for Udinese prior to his move to Vicarage Road, but has set the division alight this season, scoring 20 goals.
Watford, for whom Jackett made 337 appearances as a player, are sitting third in the Championship table ahead of their trip to The Den on Tuesday night.
"They will close the loophole but I also feel that, if Watford are promoted, there will be a lot of upset managers," Jackett told NewsAtDen.
Clubs can name a maximum of five domestic loanees in a matchday squad, but international deals are unlimited as they are viewed like permanent transfers by the Football League.
Jackett added: "If that loan system were open to us, whereby we were able to have more loanees in our squad, that would be very interesting. But it is a unique situation.
"I do not think that if you had a complete team of loanees from this country that you would get the right team spirit – you still need players like Alan Dunne around.
"Loanees can kick you on but you need to strike a balance in the domestic system. Watford's use of the overseas loan market is unique because the players are owned by the same people.
"Because the owners have three clubs, albeit from different countries, these loanees are playing for the same bosses, whereas in the domestic system they wouldn't be.
"If our chairman, John Berylson, had other clubs and moved players around between them, they'd still be playing for him, so I don't think these circumstances apply to many other clubs.
"Watford's owners have a fantastic scouting network that goes right around the world which will be the envy of many big Premier League clubs."
Jackett admits the arrangement is ideal for the Hornets as they get players who are both gifted and determined to make a name for themselves in England.
"Coming into the Championship, the big attraction for them is they can individually and collectively make an impression," he said.
"They can try to get into the Premier League, which is regarded as the best league in the world."