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Harmonized regulatory standards, international distribution of investment funds and the recent financial crisis

Author

Listed:
  • Douglas Cumming

    (Schlulich School of Business)

  • Gael Imad'Eddine

    (Université de Lille, LUMEN - Lille University Management Lab - ULR 4999 - Université de Lille)

  • Armin Schwienbacher

    (UvA - University of Amsterdam [Amsterdam] = Universiteit van Amsterdam)

Abstract

In this paper, we consider for the first time the impact of fund regulation on the international distribution of investment funds.We study the 2001 Undertakings for Collective Investment in Transferable Securities (UCITS) Directive of the European Union, which was put in place to mitigate fraud and promote investor confidence throughout Europe.We examine the impact of UCITS on international distributions of European investment funds over the 2002–2009 period.We showthat the UCITS regulatory structure has significantly facilitated cross-border fund distributions, albeit UCITS has had less success in facilitating distributions among smaller fund promoters. Also, UCITS funds, especially UCITS equity funds, have lost some of their advantage in terms of cross-border distribution during the period of the recent financial crisis. Further, we show there has been a growing interest in UCITS over time outside Europe, notably in Asia.

Suggested Citation

  • Douglas Cumming & Gael Imad'Eddine & Armin Schwienbacher, 2012. "Harmonized regulatory standards, international distribution of investment funds and the recent financial crisis," Post-Print hal-04445431, HAL.
    • Handle: RePEc:hal:journl:hal-04445431
    DOI: 10.1080/1351847X.2011.579743
    Note: View the original document on HAL open archive server: https://hal.science/hal-04445431
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Mutual funds; International distribution; UCITS; European regulation; Law and finance JEL Classification: G23; G15; G18; K22; mutual funds; international distribution; law and finance; Mutual funds International distribution UCITS European regulation Law and finance JEL Classification: G23 G15 G18 K22;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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