Harmonized Regulatory Standards, International Distribution of Investment Funds and the Recent Financial Crisis

European Journal of Finance, 18(3-4), 261-292 (2012).

47 Pages Posted: 27 Oct 2009 Last revised: 24 Nov 2014

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University

Gael Imad’Eddine

Faculte de Finance Banque Comptabilite - Universite de Lille

Armin Schwienbacher

SKEMA Business School

Date Written: June 7, 2010

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 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 show that the UCITS regulatory structure has significantly facilitated cross-border fund distributions, albeit UCITS has had less success for 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.

Keywords: Mutual funds industry, International distribution, UCITS, Law and finance

JEL Classification: G23, G15, G18, K22

Suggested Citation

Cumming, Douglas J. and Imad’Eddine, Gael and Schwienbacher, Armin, Harmonized Regulatory Standards, International Distribution of Investment Funds and the Recent Financial Crisis (June 7, 2010). European Journal of Finance, 18(3-4), 261-292 (2012).. Available at SSRN: https://ssrn.com/abstract=1494304 or http://dx.doi.org/10.2139/ssrn.1494304

Douglas J. Cumming

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Gael Imad’Eddine

Faculte de Finance Banque Comptabilite - Universite de Lille ( email )

2 rue de Mulhouse
Lille, -- 59800
France

Armin Schwienbacher (Contact Author)

SKEMA Business School ( email )

Avenue Willy Brandt
Euralille, 59777
France

HOME PAGE: http://sites.google.com/view/armin-schwienbacher

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