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

A Promotore Finanziario is the Italian equivalent of an independent advisor

16

SIMs are legally separated bank stockbroking arms

17

Mixed-systems combine the banking & SIM models

17

SGRs (Società di Gestione di Risparmio) are banking arm fund managers

18

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

Independent financial advisors play a minor role in life & pensions distribution due to inadequate regulation

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

And ABI, Assogestioni & Assoreti are organizations also working to further promote the awareness of their members' practices in the Italian financial market

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

The Financial Services Action Plan

32

Insurance Mediation Directive

32

UCITS III

32

Markets in Financial Instruments Directive (MiFID)

32

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

However, both Consob & Bank of Italy's roles overlap, which can lead to confusion

36

The European Commission suggests a regulary 'pause' over the next five years

36

EC simplification project is likely to affect the insurance industry across Europe

37

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

The fact that many distribution channels are interlinked means investors have to take care in ensuring they are receiving impartial advice

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

Interactive Databases

51

Reports

51

Briefs

52

Global Wealth Management SPP

52

Interactive Databases

52

Market Reports

52

Strategic Insight Reports

52

Wealth Management Competitor Tracker

53

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