Belgo-Dutch Financial Advice Market

Published by: Datamonitor

Published: Jan. 27, 2010 - 31 Pages

Table of Contents

Overview

Catalyst

Summary

Executive Summary

Market structure

Regulatory developments

Customer demands

Table of Contents

Table of figures

Table of tables

Market Structure

There are strong differences between the financial intermediary market in Belgium and the Netherlands

Belgium and the Netherlands have a small financial intermediary market, amassing only 12,000 financial advisors between the two countries

Insurance companies have a strong channel in place within the life and pensions markets in both countries, although the distribution by agents differs quite strongly

Tied advisors account for sizable components of both intermediary markets but play a more important role in the Belgian market

Regulatory Developments

A number of government bodies control regulation of the financial markets in the Netherlands

In the Netherlands, the AFM is responsible for the monitoring of financial advisors

The Banking, Finance and Insurance Commission is responsible for the supervision of the Belgian Market

The CBFA enforces the registration of financial intermediaries

The European Commission has introduced a number of regulatory reforms affecting the financial advice distribution channel in Belgium and the Netherlands in recent years

Insurance Mediation Directive allows cross-border advice

Markets in Financial Instruments Directive increases the suitability of advice

Compliance has been varied in the Belgo-Dutch region

Negative press coverage and new legislation forcing advisors to reveal commission rates may initiate the move towards fee-based financial advice

Negative press attention brings fee-based business models closer to viability but its day is not yet here

Regulation is in the pipeline to reveal the amount of commission advisors receive when selling FS products

Changes in the provision of pensions looks set to increase the role of intermediaries, with opportunities in the Netherlands looking particularly interesting

Servicing Customers

Belgo-Dutch HNWs appreciate the risk-return relationship and look to reap higher rewards for their sturdy risk appetites

Belgo-Dutch HNWs combine strong risk appetites with below-average knowledge of products and market understanding

Belgo-Dutch HNWs are looking to take advantage of the market turbulence, bearing more risk to gain potentially higher returns

HNW demands for the future revolve around high risk, high return products

An interest in direct equity and margin lending signposts Belgo-Dutch HNWs high return preferences

Belgo-Dutch HNWs are looking for mispriced equities and are not averse to doing so unaided

Belgo-Dutch wealth managers reveal the best strategies to increase wallet share and customer retention

CRM and face-to-face contact are the most effective techniques for driving wallet share in the Belgo-Dutch region

Pro-activity with investment suggestions drives customer retention

The Netherlands' retail customers are not yet convinced by professional financial advice

APPENDIX

Definitions

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Market share breakdown by type of intermediary: Belgium and the Netherlands vs. European average

List of Figures

Figure 1: The Belgo-Dutch markets are much smaller than their European neighbors

Figure 2: The prevalence of agents distributing L&P varies between Belgium and the Netherlands

Figure 3: Belgium and the Netherlands have quite similarly structured intermediary markets

Figure 4: Belgo-Dutch HNWs reveal strong appetites for risk coupled with average knowledge and understanding

Figure 5: The high risk appetite is tempered by an understanding of the risk return relationship

Figure 6: Belgo-Dutch HNWs are demanding very different products from those seen from the European average

Figure 7: Interest in direct equity investment and margin lending once again highlights the robust Belgo-Dutch risk profile

Figure 8: Mistrust of banks has caused Belgo-Dutch HNWs to consider managing their own money

Figure 9: CRM is particularly effective in the Belgo-Dutch region

Figure 10: Being proactive is essential to maintaining a client base in the Belgo-Dutch region

Figure 11: Dutch consumers reveal a mixed response concerning professional financial advice

Figure 12: Dutch consumers are showing a preference for advice from their primary bank

Figure 13: Dutch consumers fly in the face of the global trend and are not shopping around more for financial products

Figure 14: There are lower levels of trust in financial advisors within the Dutch market compared to other markets globally

Abstract

• Structure of the Belgo-Dutch advisory market including distribution data.
• HNW investors' views of, and use of, financial advice based on Datamonitor's proprietary survey.
• Belgo-Dutch consumers' trust in banks and independent financial advisors based on results from Datamonitor's proprietary survey.
• Regulatory environment for financial advice in Belgium and the Netherlands.

• Understand the structure of the Belgo-Dutch financial advice market, and the broader financial services distribution channels.
• Gain an insight into what customers are demanding from their financial advisors, both now and in the future.
• Find out what impact regulation has had on the financial advice market landscape in Belgium and the Netherlands.

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