Product Type: Market Research Report
Published by: Datamonitor
Published: February 2007
Product Code: R313-21077Description Introduction
This report gives an overview of the market for financial advice in Germany. It gives competitor numbers by firms and individuals, how much they sell of which products, and what opportunities the market presents to product providers going forward.
Scope
Analyzes the market for financial advice in Germany, including types of advisers, key products and leading associationsEncompasses both the German financial advice market and the wider issues affecting Europe as a wholeContains detailed competitor information and analysis of current issues and opportunitiesOffers a comprehensive evaluation of the key players in the market and the potential for growth
Highlights
The financial advisory distribution channel in Germany is very large but truly independent advice is still marginal. There are currently around 500,000 financial intermediaries in the German market, most of whom are single-tied.
The European Commission has introduced a number of regulatory reforms affecting financial services in the EU. IMD and MiFiD regulation are likely to have a profound impact on the German financial advice channel.
The top four competitors in the German market are DVAG, AWD, MLP and OVB, holding 75% of the financial advice market there. The total revenue of these four players amounted to more than EUR2.1bn in 2005.
Reasons to Purchase
Gain a comprehensive understanding of the size and scope of the German financial advice marketObtain detailed and invaluable analysis of the competitive landscape and potential for market entryAssess the importance of this channel for distribution strategies going forwardTable of Contents - EXECUTIVE SUMMARY
- Market Structure
- Regulatory Developments
- Competitor Dynamics
- Opportunities
- CHAPTER 1 INTRODUCTION
- What is this report about?
- Who is the target reader?
- How to use this report
- CHAPTER 2 MARKET STRUCTURE
- Introduction
- Key findings
- The financial advisory distribution channel in Germany is very large but truly independent advice is still marginal
- Germany's financial advisors have not been held in high regard in recent years
- Large financial advisory firms and networks are accused of being product pushers
- The German insurance sector is experiencing a move towards a more intermediated market
- Demand for independent financial advice is expected to rise due to complexity of pension products
- There are currently around 500,000 financial intermediaries in the German market
- Germany is home to two-thirds of the total European financial intermediary community
- The German financial advice market is dominated by single-tied advisors
- In the German financial services market banks dominate the sale of mutual funds
- Banks have a firm grip on the distribution of mutual funds in the German market
- The insurance channel has gained in importance despite pressure from banks
- IFAs and other advisors remain a significant channel for the distribution of mutual funds
- Fund supermarkets and the direct channel are relatively insignificant in the German market
- Data Tables
- CHAPTER 3 REGULATORY DEVELOPMENTS
- Introduction
- Key findings
- The Central Bank and the Federal Financial Supervisory Authority regulate the German financial services industry
- The Federal Financial Supervisory Authority BaFin represents the German FSA equivalent
- Membership in the FPSB association is regarded as a stamp of quality for financial advisors
- HNW advisors are organized in the Association of independent Wealth Managers
- The European Commission has introduced a number of regulatory reforms affecting financial services in the EU
- The Financial Services Action Plan (FSAP)
- UCITS III
- Insurance Mediation Directive (IMD)
- IMD regulation is likely to change the German financial services distribution landscape
- Markets in Financial Instruments Directive (MiFiD)
- MiFiD regulation is likely to have a profound impact on the German financial advice channel
- The European Commission suggests a regulatory 'pause' over the next five years
- EC simplification project is likely to affect the insurance industry across Europe
- CHAPTER 4 COMPETITOR DYNAMICS
- Introduction
- Key findings
- The German financial advice market is dominated by 4 firms
- The top four competitors in the German market are DVAG, AWD, MLP and OVB, holding 75% of the financial advice market there
- The total revenue of DVAG, AWD, MLP and OVB amounted to more than EUR2.1bn in 2005
- DVAG is the largest German financial advisory firm, measured by revenue, followed by AWD and MLP
- DVAG enters into exclusive partnership with AachenMünchener
- AWD closed its Italian operations because of a lack of profitability
- MLP focuses on its core business following the sale of its life arm
- OVB went public but majority stake remains in life insurers' hands
- Broker pools are gaining popularity in the German advice market
- Data Tables
- CHAPTER 5 OPPORTUNITIES
- Introduction
- Key findings
- The German financial advice market offers only restricted opportunities for new entrants but the market looks good for independent advice
- Broker pools have gained increased popularity but the boom period is over
- Germans do not embrace the idea of fee-based financial advisory service
- Independent financial advisors have to find a niche to successfully compete in the German market
- Retirement provision is the most prevalent issue in the German financial advice market
- Independent financial advisors offer their clients mainly traditional investments
- Data Tables
- APPENDIX
- Definitions
- Research methodology
- Further reading
- Global Wealth Management SPP
- Interactive Databases
- Market Reports
- Strategic Insight Reports
- Wealth Management Competitor Tracker
- Datamonitor Asia Pacific Wealth Management SPP
- Savings and Investments SPP
- Interactive Databases
- Reports
- Life and Pensions SPP
- Interactive Databases
- Reports and Briefs
- Financial Advice Market SPP
- SPP writing team
- List of Tables
- Table 1: Number of German intermediaries, segmented by group, 2005
- Table 2: Total number of intermediaries, segmented by country, 2005
- Table 3: German intermediaries, split by channel, 2005
- Table 4: Distribution of life insurance products in Germany, 2005
- Table 5: Key figures of Germany's top 4 financial advisory firms, 2005
- Table 6: Shareholder structure of OVB AG, 2005-2006
- Table 7: Top 20 financial advisory firms in Germany
- Table 8: AWD revenue breakdown by geographical origin, 2005
- Table 9: Top 10 broker pools ('Maklerpools') in Germany, 2005
- Table 10: In your opinion, how relevant are the following topics in the market?
- Table 11: Which products do you offer your clients actively and regularly?
- List of Figures
- Figure 1: There are currently around 500,000 financial intermediaries in the German market
- Figure 2: Germany has by far the largest number of financial services intermediaries in Europe
- Figure 3: Almost two-thirds of German financial advisors are single-tied
- Figure 4: Distribution in Germany is slowly diversifying but is still controlled by the banking networks
- Figure 5: The top 4 financial advisory firms in Germany were controlling 75% of the financial advice market in 2005
- Figure 6: The revenue of the top 4 financial advisory firms in Germany increased significantly in 2004
- Figure 7: DVAG relies on ""first-class products of strong partners""
- Figure 8: In 2005 AWD generated almost 50% of its revenue outside its home market
- Figure 9: MLP has subsidiaries in a number of European countries and also operates its own bank
- Figure 10: BCA is the largest broker pool in the German market with a commission revenue of EUR66.5m in 2005
- Figure 11: Retirement provision is the most prevalent issue in Germany
- Figure 12: Traditional investments are the most offered products in the German financial advice market
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