The Spanish Financial Advice Market 2007: Industry Research Report

The Spanish Financial Advice Market 2007

Published Date: February 2007

Published By: Datamonitor

Page Count: 54

Order Code: R313-21079

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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
Financial advice in Spain is dominated by the banks
Some business banks with private divisions classify themselves as independent advisors
There are few independent advisors in the Spanish market as a result of insufficient regulation
There were just under 32,000 non-bank financial intermediaries in the Spanish market in 2005
Spain is home to approximately 4% of the total European financial advisor community
Compared to Europe as a whole, the Spanish financial advice market is dominated by single-tied advisors
97% of financial advisors in Spain are remunerated on a commission-fee basis
Banks are the most important channel for distribution of financial services products in the Spanish financial advice market
The density of the branch networks are the key to the success of the retail banks
Other channels are a marginal presence in the Spanish market
Cuts in capital gains tax in January 2007 may change the investment habits of Spanish investors
The Spanish financial advice market is fragmented and thus regulation has only had an effect on the banking channel
Financial advisors are mostly tied to banks, so tend to offer the banks' own products
Hedge fund regulation has recently been introduced into the domestic market by CNMV
Data
CHAPTER 3 REGULATORY DEVELOPMENTS
Introduction
Key findings
CNMV is the main regulatory body for financial advisors in the Spanish market
CNMV has enforced no regulatory reforms aimed specifically at the advisory market over the last five years
AIF & ANAF are the two associations that have been actively promoting increased awareness of the advisory industry
The European Commission has introduced a number of regulatory reforms affecting the financial advice distribution channel in Spain in recent years
The Financial Services Action Plan
Insurance Mediation Directive
UCITS III
Markets in Financial Instruments Directive (MiFID)
The MiFID directive is expected to have an impact but many firms believe they were compliant well before its arrival
Creation of a financial advice certificate may go some way towards allaying investor trust issues
Although MiFID is a step forward for financial advice, it is not necessarily the answer to their problems
The European Commission suggests a regulary 'pause' over the next five years
EC simplification project is likely to affect the insurance industry across Europe
The AIF has called for more regulation of issues related to financial advisers
CHAPTER 4 COMPETITOR DYNAMICS
Introduction
Key findings
BBVA (Banco Bilbao Vizcaya Argentaria) is one of the two biggest financial advisory banks in Spain
BBVA has pushed a significant proportion of its workforce through advisory training schemes
Santander's prowess lies in its extensive subsidiary network
Renta 4 was voted the best internet-based intermediary in 2005
CHAPTER 5 OPPORTUNITIES
Introduction
Key findings
Spain is a market characterised by limited opportunities for new entrants
Firms looking at entering the Spanish market should focus their efforts on portfolio management, wealth advice and tax planning
New entrants should look towards acquisition to establish a foothold in the market
Or perhaps take a more specialized approach by targeting family financial planning or the upper end of the mass market customer base
Firms can better supply financial advisors through adequate training and education
Banks are expected to continue their domination of the Spanish advisory market, leaving little opportunity for independents
APPENDIX
Definitions
Further reading
Financial Advice Market SPP
Savings and Investments SPP
Interactive Databases
Reports
Briefs
Global Wealth Management SPP
Interactive Databases
Market Reports
Strategic Insight Reports
Wealth Management Competitor Tracker
Datamonitor Asia Pacific Wealth Management SPP
SPP writing team
List of Tables

Table 1: Spanish intermediaries, split by channel, 2005
Table 2: European intermediaries remunerated on a purely fee-basis
Table 3: Number of Spanish intermediaries, segmented by group, 2005
Table 4: Total number of intermediaries & institutions, segmented by country, 2005
Table 5: Distribution of mutual funds in the Spanish market by distribution channel, 2006
List of Figures

Figure 1: Individual intermediaries made up the largest advisory group in the Spanish market in 2005
Figure 2: Individual intermediaries made up the largest non-bank advisory group in the Spanish market in 2005
Figure 3: Spain has the 4th highest number of intermediaries in Europe but this represents just 4% of the total EU market share
Figure 4: Single-tied advisors dominated the Spanish non-bank advisory channels in 2005
Figure 5: Spain has a minor proportion of intermediaries remunerated on a purely fee-basis
Figure 6: The retail bank is the dominant channel for the distribution of mutual funds in Spain

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