Promoting Competition in the Distribution of Mutual Funds : Lessons for Securities Markets Regulatory Authorities in Emerging Market Economies
This Policy Note focuses on distribution channels, the role they play in product diversification and costs, and how regulation can promote competition in mutual funds (MFs) distribution. In many emerging market economics (EMEs) where both the capit...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/739951533672034745/Promoting-competition-in-the-distribution-of-mutual-funds-lessons-for-securities-markets-regulatory-authorities-in-emerging-market-economies http://hdl.handle.net/10986/30312 |
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okr-10986-303122021-05-25T09:17:33Z Promoting Competition in the Distribution of Mutual Funds : Lessons for Securities Markets Regulatory Authorities in Emerging Market Economies World Bank Group EMERGING MARKET ECONOMIES MUTUAL FUNDS SECURITIES REGULATION SECURITIES MARKET FINANCIAL REGULATION BANKING This Policy Note focuses on distribution channels, the role they play in product diversification and costs, and how regulation can promote competition in mutual funds (MFs) distribution. In many emerging market economics (EMEs) where both the capital markets and the MFs have reached certain level of development, distribution channels are dominated by banks and their groups. This dominance in turn allows them to keep a "closed architecture" and to offer their clients only the products they manufacture. However, different forces are opening the doors to competition in the distribution channels including (i) a higher level of development of the MF industry, anchored in a growing middle class with additional savings to invest; (ii) financial innovation, which has been supported by demographics and the increased penetration of internet, social media and mobile services; and (iii) regulatory reforms, some of them explicitly aimed at increasing competition. These forces are driving the emergence of new distribution channels, particularly but not exclusively in the form of electronic platforms which might enable retail investors to access a wider variety of products, potentially at lower costs, and robo-advisors, which can lower the costs of accessing advice, potentially enabling retail investors to be better informed. 2018-08-27T17:17:19Z 2018-08-27T17:17:19Z 2017-11-01 Policy Note http://documents.worldbank.org/curated/en/739951533672034745/Promoting-competition-in-the-distribution-of-mutual-funds-lessons-for-securities-markets-regulatory-authorities-in-emerging-market-economies http://hdl.handle.net/10986/30312 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Policy Notes Economic & Sector Work European Union Australia Brazil Chile Colombia India Korea, Republic of Mexico United Kingdom United States |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
EMERGING MARKET ECONOMIES MUTUAL FUNDS SECURITIES REGULATION SECURITIES MARKET FINANCIAL REGULATION BANKING |
| spellingShingle |
EMERGING MARKET ECONOMIES MUTUAL FUNDS SECURITIES REGULATION SECURITIES MARKET FINANCIAL REGULATION BANKING World Bank Group Promoting Competition in the Distribution of Mutual Funds : Lessons for Securities Markets Regulatory Authorities in Emerging Market Economies |
| geographic_facet |
European Union Australia Brazil Chile Colombia India Korea, Republic of Mexico United Kingdom United States |
| description |
This Policy Note focuses on distribution
channels, the role they play in product diversification and
costs, and how regulation can promote competition in mutual
funds (MFs) distribution. In many emerging market economics
(EMEs) where both the capital markets and the MFs have
reached certain level of development, distribution channels
are dominated by banks and their groups. This dominance in
turn allows them to keep a "closed architecture"
and to offer their clients only the products they
manufacture. However, different forces are opening the doors
to competition in the distribution channels including (i) a
higher level of development of the MF industry, anchored in
a growing middle class with additional savings to invest;
(ii) financial innovation, which has been supported by
demographics and the increased penetration of internet,
social media and mobile services; and (iii) regulatory
reforms, some of them explicitly aimed at increasing
competition. These forces are driving the emergence of new
distribution channels, particularly but not exclusively in
the form of electronic platforms which might enable retail
investors to access a wider variety of products, potentially
at lower costs, and robo-advisors, which can lower the costs
of accessing advice, potentially enabling retail investors
to be better informed. |
| format |
Policy Note |
| author |
World Bank Group |
| author_facet |
World Bank Group |
| author_sort |
World Bank Group |
| title |
Promoting Competition in the Distribution of Mutual Funds : Lessons for Securities Markets Regulatory Authorities in Emerging Market Economies |
| title_short |
Promoting Competition in the Distribution of Mutual Funds : Lessons for Securities Markets Regulatory Authorities in Emerging Market Economies |
| title_full |
Promoting Competition in the Distribution of Mutual Funds : Lessons for Securities Markets Regulatory Authorities in Emerging Market Economies |
| title_fullStr |
Promoting Competition in the Distribution of Mutual Funds : Lessons for Securities Markets Regulatory Authorities in Emerging Market Economies |
| title_full_unstemmed |
Promoting Competition in the Distribution of Mutual Funds : Lessons for Securities Markets Regulatory Authorities in Emerging Market Economies |
| title_sort |
promoting competition in the distribution of mutual funds : lessons for securities markets regulatory authorities in emerging market economies |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/739951533672034745/Promoting-competition-in-the-distribution-of-mutual-funds-lessons-for-securities-markets-regulatory-authorities-in-emerging-market-economies http://hdl.handle.net/10986/30312 |
| _version_ |
1764471648764821504 |