Dr. Luisa-Sophie Kunzel from the ADA Chair in Financial Law (Inclusive Finance) at the University of Luxembourg successfully defended her Doctorate in Law on September 17, 2025. Her thesis, titled “FinTech in Fund Governance,” was completed under the supervision of Professor Dirk A. Zetzsche.
The research evaluates how emerging technologies, specifically Artificial Intelligence, Big Data, Cloud Computing, Distributed Ledger Technology, and Smart Contracts (collectively termed ‘ABCD’), can improve investor protection in collective investment schemes.
The thesis examines how ABCD technologies can be implemented by management companies and depositories within the fund governance framework. Use cases include AI applications in risk management for fraud detection, DLT for registration purposes, and cloud technologies for administrative and information-sharing functions. The analysis concludes that ABCD implementation has significant potential to enhance investor protection by reducing human bias, decreasing costs and processing time, and creating greater efficiency, while acknowledging associated technological risks.
Dr. Kunzel critically examines the existing EU financial regulatory framework governing fund governance, particularly the AIFM-Directive and UCITS-Directive. She challenges the prevailing ‘technology-neutral approach’ adopted by current financial regulation.
The thesis introduces TORR (Technology-Oriented Risk Regulation), a novel regulatory framework designed specifically for governing ABCD technology implementation in fund governance. This approach proposes technology-specific and risk-oriented regulation to enable proportionate and effective oversight, creating legal certainty and harmonization while allowing innovation to enhance investor protection.
Dr. Luisa-Sophie Kuenzel is a postdoctoral researcher at the ADA Chair in Financial Law and Inclusive Finance of Prof. Dirk Zetzsche. She joined the University of Luxembourg in summer 2021. She studied law and business in Wiesbaden (GER) and Wellington (NZ) and holds the German bar exams and a Master’s in Business. During her time as a PhD Candidate, Luisa was part of the “Digitalisation Law and Innovation” (DILLAN) program by DTU. Her research area is financial law with a focus on FinTech and Investment funds. She wrote her thesis on “FinTech in Fund-Governance”.
The research addresses the external management problem inherent in investor-fund relationships and contributes to advancing both theoretical understanding and practical applications of financial technology regulation.
Source: ADA Chair in Financial Law, University of Luxembourg
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