Is the distributed ledger technology the best alternative to further optimize the European cross-border fund distribution process ?

Abstract

The cross-border fund distribution area is lacking of concrete studies around the possible applications of DLT. After an overall review of the actual state of the European cross-border fund distribution and its barriers, DLT is explained by combining multiple views around its features and issues, which are both praised and criticized. The biggest challenge faced by DLT in the context of cross-border fund distribution is a global harmonization, deeply needed at the European level, in addition to the definition of a clear regulatory framework for its large scale utilization. This paper concludes that DLT is the best alternative to further optimize the European cross-border fund distribution process in the long term. However, time is needed for the technology to mature and for regulators to create awareness and constitute the framework needed.