Table of Contents
TABLE OF CONTENTS
EXECUTIVE SUMMARY 4
Market Structure 4
Regulatory Developments 5
Competitor dynamics 6
Opportunities 7
CHAPTER 1 INTRODUCTION 14
What is this report about? 14
Who is the
target reader? 14
How to use this report 14
CHAPTER 2 MARKET STRUCTURE
15
Introduction 15
Key findings 15
The financial advisory
distribution channel in Italy is fairly large in comparison to fellow EU
nations and comprises mainly of non-independent financial advisors 16
Bancassurers are the most important channel for provision of advice in the
Italian market 16
However, the Italian financial advice market has a
unique shape compared to the rest of Europe 16
Promotori Finanziari are
the main point of contact for Italian investors, leaving little room for
independent advisors 18
There are currently just under 90,000 financial
intermediaries in the Italian market 18
Italy is home to approximately 8%
of the total European financial advisor community 19
Compared to the rest
of Europe, the Italian financial advice market is dominated by single-tied
advisors 20
Fees are usually charged on a commission-basis in the Italian
market 21
Banks are the most important channel for distribution of
financial products in the Italian market 21
Distribution of life &
pensions in Italy also remains in control of the banks 22
Data 25
CHAPTER 3 REGULATORY DEVELOPMENTS 27
Introduction 27
Key findings
27
Consob is the main body regulating financial advisors in the Italian
market 28
The Bank of Italy also has a role to play in regulation of the
financial markets 29
ANASF is a professional association representing
Italian financial advisors 29
NAFOP is Italy' s national association
representing "fee-only" advisors 30
The numerous associations and
overlapping roles of regulators have created a confusing regulatory
environment in Italy 31
The European Commission has introduced a number of
regulatory reforms affecting the financial advice distribution channel in
Italy in recent years 31
Consob has done little to prepare financial
institutions for MiFID and some believe they have actually complicated matters
34
However, MiFID is expected to rectify the issue somewhat & there are
plans to strengthen Consob' s ability to exert influence on the market 35
Bank of Italy has been more supportive in regulatory matters concerning
Italy' s financial market 36
The European Commission suggests a regulary
' pause' over the next five years 36
The reclassification of financial
advice has contributed to the underdeveloped nature of the independent
advisory channel in Italy 37
CHAPTER 4 COMPETITOR DYNAMICS 39
Introduction 39
Key findings 39
Banca Mediolanum is one of the biggest
intermediary SIMs in Italy, along with Banca Fideuram 40
Intesa SanPaolo
is the new merged banking group of two of the biggest banks in Italy 40
Unicredito-owned Xelion Bank has a network of promotori who have started
charging consulting fees 41
Nuoviinvestimenti is a niche independent
advisory firm in Italy 42
Consultique is one of the few independent
fee-only financial planners in the Italian market 42
Azimut is a fully
independent asset management company 42
CHAPTER 5 OPPORTUNITIES 44
Introduction 44
Key findings 44
Opportunities in the Italian market
are scant 45
As demonstrated by the closure of AWD 45
MiFID could
signal an opening for the independent channel, as post-MiFID lawyers &
accountants will have to be registered to continue to offer advice 46
There is still a lot to be done before independent advisory firms can mount a
credible challenge against the banking channel 46
APPENDIX 48
Definitions 48
Further reading 51
Financial Advice Market SPP 51
Savings and Investments SPP 51
Global Wealth Management SPP 52
Datamonitor Asia Pacific Wealth Management SPP 53
SPP writing team 55
LIST OF TABLES
Table 1: Number of Italian intermediaries,
segmented by group, 2005 25
Table 2: Total number of intermediaries,
segmented by country, 2005 25
Table 3: Italian intermediaries, split by
channel, 2005 25
Table 4: Distribution of mutual funds in the Italian
market by distribution channel, 2006 26
LIST OF FIGURES
Figure 1: Alternative intermediary groups such as lawyers & accountants made
up the majority of the non-bank advisory group in the Italian market in 2005
4
Figure 2: Alternative intermediary groups such as lawyers & accountants
made up the majority of the non-bank advisory group in the Italian market in
2005 19
Figure 3: Italy was home to approximately 8% of financial advisors
in Europe in 2005 20
Figure 4: Single-tied advisors dominated the Italian
non-bank advisory channels in 2005 21
Figure 5: Retail banks control a
considerable share of the distribution of mutual funds in the Italian market
24
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