Football League clubs are currently compensated by a tribunal system when Premier League clubs recruit their young talent, but, under the new system, they will be paid a set compensation fee, based on each year the player has spent in the youth system.
Harvey, whose club is one of 22 who voted against the proposals, told Leeds' official website: "There is a lot of merit in parts of the EPP, but we voted no because we don't believe the new compensation structure being put in place fairly or adequately represents the development time that goes into each young player.
"We're not going to be given protection for the players we're developing when predator clubs can come and take those players away from you against a fixed compensation criteria and we don't believe that is equitable.
"Take Luke Garbutt as an example who left here for Everton, despite offers from us to stay. A tribunal agreed a fee of £600,000 with a further £750,000 on appearances and a 20% sell-on. Under the new system we would have received £134,000 instead of £600,000 with further contingent payments based on appearances.
"Our costs will have been exactly the same and that's one example why it's a dark day for clubs who have developed players over a period of time. For 22 clubs to vote against shows there's a real depth of feeling against this."