The French, Italian, German, and Spanish Markets appear prime for significant growth in independent financial advice, according to a report by Research and Markets. But before that can happen there must be a change in customer attitudes.
The predominance of insurance or bank salesmen in the French market has made it difficult for financial advisers to establish themselves, the report says. One English IFA in the French market told Research and Markets that customers in the French market do not grasp the concept of independent financial advice.
The rapidly growing wealth of Spanish consumers makes this market very attractive for independent financial advisers. Independent advisers account for only 3% of life and pensions distribution is Spain, while independent prime brokers hold a larger share at about 5%, according to the report.
According to the FECIF, Italy has about 35,000 full-time professional financial advisers employed outside the banking sector. This is the third largest number in Europe behind Germany and the United Kingdom. However, these advisers are tied or multi-tied agents of product providers, the report continues. For a significant growth of independent financial advice will require regulatory and attitudinal change.
Germany has more financial intermediaries than any other continental European country, but the independent financial adviser market remains small. German financial advisers also have to combat a bad public image. Sixty percent of the public believes that financial advisers either currently have a bad reputation or have had one in the past.