FECIF - The European Federation of Financial Advisers and Financial Intermediaries

Editorial - March 2024

Jorik van ZandenJorik van Zanden,
co-founder of the Jasper Forum

The need for capital markets and proper advice

Why and how do we have pensions?

The provision of income in old age is one of the most precarious of all social benefits. At a macro level, how do we prevent our elders from falling into poverty once they are no longer working? At a micro level, how do we ensure that the income decline in retirement is not too steep, thereby maintaining living standards? Many books have been written on the question of why we have pensions in the first place – notably by professor Nicholas Barr of the London School of Economics, who identifies three goals for retirement: consumption smoothing, insurance against longevity, and poverty prevention.

Each of these points raise the question of “why”. We arrange for pension systems to smooth the consumption of what we earn now, across to what we will need later. We then need to ensure that we have enough savings to reach what we might euphemistically call the “end of retirement”.  Lastly, and this is a macro-goal, we need to redistribute a portion of our wealth to ensure that workers who did not earn enough over their lifetime do not fall into poverty in retirement.

The “why” is relatively straightforward and not overly controversial. The question of “how” is another matter.

A German example

Recently, Germany announced plans to establish a new super fund to support its retirement system. Although the country has one of the oldest ‘modern’ retirement systems in Europe – dating from the days of Bismarck – the effects of its generosity combined with rapid demographic aging, today underscores the need for reform.

All over the world, governments are struggling to keep the traditional welfare state afloat amidst global ageing, a lack of affordable housing, and climate change. In many countries, this struggle is approaching the crisis stage.  Germany annually spends over €110bn subsidizing its statutory pension fund – nearly 25 percent of its overall €477bn state budget.

The country’s recently approved super fund would have to raise €200bn by the mid-2030s and the projected return on investments should permit the distribution of €10bn annually. As a start, an independent public foundation would be created, which is expected to receive a first €12bn capital injection in 2024 – much like other state funds such as those in Singapore, Sweden, and Norway.

As a pension enthusiast, it is interesting to see Germany shift to the Nordic way, rather than toward the occupational defined contribution plans that are common in the United Kingdom and, soon, the Netherlands. The rhetoric against such reform – often heard in both Netherlands and Germany – involves accusations of casino capitalism disguised as pensions, financial market risk and, according to Germany’s IG Metall labor union, not a way to make pensions safer.

Capital markets

While I am open to listening to these criticisms, I cannot help but firmly disagree.  The truly risky bet is the one in playing out today – allowing fully one quarter of the state budget to be spent on the provision of pensions alone. The systemic risk implied by this strategy,  to my mind, is greater than undertaking long-term investments in well-regulated capital markets. 

Other countries have demonstrated that market-focused retirement finance strategies can greatly benefit the economy.  The European Union, via several platforms, over several years, has attempted to mobilize long-term capital. The real “casino-gamble” is to rely solely on pay-as-you-go financing for retirement benefits. With an ageing population, the proportion of retirees in comparison to workers (old-age dependency ratio) is rapidly rising.   If current taxes are used to pay current retirement benefits,  contribution rates will need to dramatically expand.   The German example (this is not limited to Germany whatsoever) would mean a tax rate of 22.3% for pension contributions alone.

Add to this the costs of healthcare, which rises in tandem with age, and we are looking at a risk on par with climate change when it comes to sustaining our way of life.

Diversify

To stabilize European retirement finance, we must develop mutually-supporting public and private sector solutions.  With individuals becoming more reliant on taking care of themselves, whether via a lack of indexation for state pensions or the wind-down of defined benefit plans, action is needed. And people do not like to take action, as we have learned from behavioural finance. Adequate and affordable advice is thus key in enabling people to make well-informed decisions.

Going back to Professor Barr, we need to focus on the cost of advice.  Financial advisory costs money,  so the value of that advice must be worth it. Not without some irony, the level of capital needed to make advice worth the cost, is rather high. Examples from the UK show that many people with only a small amount of savings cannot afford financial advice, since their capital is too small. Access to high-quality advice, in some measure, can be considered a luxury.

This produces a “doughnut hole” in the advisory market: middle class retirement savers that need sufficient capital to merit advisory services.  We must reach out to policymakers and convince them that money flowing into the capital markets is not a casino, but a well-placed investment in a sustainable future. And that some form of automaticity will be beneficial so that there is capital to be advised upon to start with. A friend recently expressed doubts that that Germany’s €200bn investment may not be enough – but it surely beats the status quo in many major European economies.

 

 

 

Jorik van Zanden, is consultant at AF Advisors in Rotterdam and researcher at Utrecht University worked, at the European Parliament as a legislative aid to Sophie in ’t Veld where he worked on the Pan-European Pension Product legislation. After his time in Brussels, he moved to Fidelity International as a pension and public policy specialist and was involved in setting up FILs pan-European pension solution. Since, apart from working on his PhD he has consulted with large financial firms and central banks, mainly on legislative and business development issues. In 2022, together with John Mitchem of JM3 Projects, he launched Jasper Forum – a discussion group focused on the development of defined contribution savings systems worldwide. Jorik has published on a variety of pension and retirement issues.

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Editorial - February 2024

Vania Franceschelli Vania Franceschelli
Chairperson

Open finance and the role of financial advice

Financial advisors, by virtue of their function as connectors between financial markets and retail customers, are called upon to be ahead of the times and be ready to provide clients with the knowledge and skills necessary to allow them to make the most of the new...

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Editorial - January 2024

Simon ColbocSimon Colboc
FECIF & FEPI Secretary General

2024: the year ahead for Financial Advisors

As we settle down for a well-deserved new year break, now is a good time to reflect on the events of 2023 and what we expect in the coming year.
As we prepare to open the Champagne (or Cava, Sekt, Prosecco or whatever your favourite....

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Editorial - November 2023

Martin KleinMartin Klein
FEICIF Deputy Chairman, VOTUM Chairman

European politicians must see cutting red tape as a core task

Harmful new regulation must be prevented - the Retail Investment Strategy is a warning sign for this!

The unchecked increase in bureaucratic burdens is weakening...

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Editorial - September 2023

Josep Soler-AlbertíJosep Soler-Albertí
EFPA Spain’s Executive Director
FECIF’s Board Director

RIS: let’s make the skills matter.

After many consultations and reports within the framework of the Retail Investment Strategy (RIS), the European Commission (EC) published in May the proposal for an “Omnibus Directive” as regards the retail investor protection rules, which modifies five main financial...

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Editorial - July 2023

Frank RottenbacherFrank Rottenbacher
AfW Member of the Board

Overview of the amendments proposed on MiFID and MiFIR

At the end of 2021, the European Commission presented a Regulation proposal (2021/0385) to amend the MIFIR Regulation (600/2014 EU) aiming at improving the transparency of market data, the elimination of obstacles to the emergence of a consolidated...

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Editorial - May 2023

Me Yves Nidegger Me Yves Nidegger
Lawyer, Member of the Swiss Parliament,
Legal Advisor of GSCGI-SAIFA

Welcome to the age of sanctions

It does not seem impossible to me at all that, after the Stone Age and the Iron Age, the archaeologists of the future will one day designate the era we are entering today as the Age of Sanctions...

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Editorial - March 2023

Josep Soler-AlbertíJosep Soler-Albertí
EFPA Spain’s Executive Director
FECIF’s Board Director

Access to forecasts and information asymmetry in financial advice

The information asymmetry between suppliers and customers in the investment product markets, as in others, is to blame for its imperfect functioning. The availability of analysis and forecasts for suppliers and not for clients is...

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Editorial - January 2023

David CharletDavid Charlet
ANACOFI Chairman

A crazy 2022 – what awaits in 2023?

War, financial markets, real estate, revision of European texts... between a planned return to normal life and the abnormality of an unthinkable and yet present war... let’s have a look back at a crazy year for our professions and for the world. What next could we expect for 2023...

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Editorial - November 20221

Simon ColbocSimon Colboc
FEPI Secretary General

Assets for retirement in Europe: the case of the missing €10tn

High-level analyses of demographic evolution in Europe and the state of local unfunded pension schemes come to the alarming conclusion that there is €10tn missing from the system, if we are to have a level of funded pensions comparable with US, UK or Scandinavian markets...

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Editorial - September 2022

Vincent DerudderVincent Derudder
Honorary Chairman & Board member

European e-commerce continues to grow

Despite consumer caution about spending – because of the war in Ukraine, uncontrolled inflation, disruption of global chain supplies and a general sense of uncertainty leading to pre-pandemic level growth – e-commerce has continued to grow in 2021 in Europe and it...

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Editorial - July 2022

Vania Franceschelli Vania Franceschelli
Deputy Chairwoman

The European Commission project for Open Finance

In 2020, the Commission identified the promotion of data-driven finance as one of the priorities of its digital finance strategy. On 25 November 2021, the Commission proposed legislative proposals on the Single European Access Point (ESAP) as part of the Capital Markets Union...

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Editorial - May 2022

Garry HeathGarry Heath
Member of the FECIF board

Major insights into the impact of regulation

Every two years, the UK’s adviser trade association, The Impartial Financial Advisers Association, creates a report on the availability of professional advice to UK consumers. This report is created from desktop research via already published information combined with a...

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Editorial - March 2022

Vania Franceschelli Vania Franceschelli
Deputy Chairwoman

The new European digital finance package

The EU Digital Finance Package consists of a series of initiatives that will be implemented by 2024, aimed at encouraging the development of the European Union and a competitive financial sector, intended to reap the benefits of digital finance in terms of...

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Editorial - January 2022

Josep Soler-AlbertíJosep Soler-Albertí
Chairman, FECIF Advisory Committee and CEO, EFPA Spain

Thirteen clues to investment in 2022

We could cite less than 13, or even more clues, but it must be said that, contrary to what some people think, investment will not be driven by good or bad luck, but by a set of economic and political forces...

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Editorial - November 2021

Jim HenningJim Henning
Principal Investment Consultant, Dynamic Planner

Sustainability: what is the role of the financial markets?

How are we able to satisfy the needs of the present without compromising the ability of future generations to meet their own needs?
Financial institutions such as...

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Editorial - September 2021

David CharletDavid Charlet
ANACOFI Chairman

Economic recovery or stall?

Return to normal life or Covid episode 4 or 5? Will Europe and the rest of the world experience the same “back to school”? What role for the companies and intermediaries that we represent?

We all tried to make the month of August as restful as possible, as disconnected from Covid as we...

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Editorial - July 2021

Vania Franceschelli Vania Franceschelli
Deputy Chairwoman

COVID-19 highlights the limitations of Money Market Funds

The pandemic emergency outbreak, in March 2020, shed a light on some vulnerabilities of money market funds, which have experienced huge outflows and problems in selling their assets to meet investors’ demands. Fortunately...

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Editorial - May 2021

Martin Klein Martin Klein
Chairman FECIF & VOTUM

“Spirit of optimism in Europe”

There is a spirit of optimism in the air. Across Europe. Even though all 27 EU member states are in the midst of the final phase of fighting the pandemic and the infection figures do not yet allow a final signal of relief, rising vaccination rates finally promise a timely ray of hope...

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Editorial - March 2021

Simon ColbocSimon Colboc
FEPI Secretary General

Pension reform in Europe: make way for the 4th Pillar?

A wide-ranging study on retirement across Europe conducted in 2020 by the FECIF European Pensions Institute (FEPI) shows that current pension reforms, however ambitious, are far from enough to address the scale of the issue.

>> CONTINUE READING

Editorial - January 2021

Simon ColbocSimon Colboc
FEPI Secretary General

The Savings Revolution

Household financial savings are making headlines today. This is hardly surprising, given that everything seems to revolve around these savings, from the financing of pensions to the development of a more sustainable economy, the very survival of old Europe and our...

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Editorial - November 2020

Vincent J.DerudderVincent J.Derudder
FECIF Advisory Committee Member & Honorary Chairman

Building Partnerships with European Professional Associations

In 2000, under the presidency of Portugal, the “strategy of Lisbon” was launched to promote a European knowledge-based and competitive economy, in the paradigm of the competitive...

>> CONTINUE READING

Editorial - September 2020

Vania Franceschelli Vania Franceschelli
Deputy Chairwoman

The importance of fighting for gender equality in the financial advice industry

Gender equality is a key point in the 2030 Agenda for Sustainable Development adopted at the United Nations Sustainable Development Summit on 25th September 2015. The plan set by the Agenda is formed by 17 goals that aim to...

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Editorial - July 2020

Edden KiftEdden Kift
PortfolioMetrix business development team

5 ways advisers have remained client focused during COVID-19

The global pandemic has necessitated a rethink by many advisers about how they should go about their business. While some have continued to function relatively easily and effectively, for others...

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Editorial - May 2020

Vania Franceschelli Vania Franceschelli
Deputy Chairwoman

Millennials – a generation that needs to be heard

Financial advisors have to take into account that their role needs to be sustainable in the long term. A great role in this process is played by the ability to listen and study the habits and needs of new generations. A focus on the younger portion of the population will enhance...

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Editorial - March 2020

Josep Soler-AlbertíJosep Soler-Albertí
CEO, IEF & Executive director, EFPA Spain

Financial advice and the cognitive biases of pensions

When Richard Thaler, after winning the 2017 Nobel Prize in Economics for his work on the impact of irrationality and emotions in economic decisions, responded to journalists that he would spend the amount of the prize (one million euros) “irrationally”, he undoubtedly...

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Editorial - January 2020

Paul StanfieldPaul Stanfield
FECIF Secretary General

Does financial advice provide value? It sure does!

A recent study proved that:

  • Professional financial advice can and does significantly enhance clients’ wealth.
  • That this benefit occurs even in a commission environment.
  • And it is most valuable for less wealthy clients.

Quantifying the value of advice has always been somewhat...

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Editorial - October 2019

Jirí ŠindelárJiří Šindelář
Broker Consulting, a.s.
former Deputy Chairman of FECIF

Yet another regulatory myth explained

Nobody in the financial industry could have missed how notable the attention has been in all recent regulations paid to the conflict of interest and its mitigation. All those MiFIDs, IDDs, MCDs and other Directives, have substantial parts dedicated to so called “inducements”. This is...

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Editorial - August 2019

David CharletDavid Charlet
FECIF & ANACOFI Chairman

A new EU or same old, same old?

Will this summer see a new Europe or the return to the “good old continent"? What are the challenges for our profession and our clients?

It will not have been easy but finally, Ursula von der Leyen was...

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Editorial - June 2019

Olivia GeldenhuysOlivia Geldenhuys
PortfolioMetrix Head of Support, Europe

Trust – the cornerstone of financial advice

There’s a quote that says, “Trust takes years to build, seconds to break, and forever to repair”. This is nowhere truer than in the financial world, where a person’s quality of life relies on decisions made by the experts in whom they place their trust. As a financial adviser, your ability to build trust...

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Editorial - April 2019

Vincent J.DerudderVincent J.Derudder
FECIF Advisory Committee Member & Honorary Chairman

Happy Birthday FECIF! And here’s to real consumer protection

On the 30th June this year, FECIF will celebrate its 20th anniversary!

The Fédération Européenne des Conseils et Intermédiaires Financiers Aisbl (FECIF) was created on 30th June 1999 by a Royal Decree of the Belgian Ministry of Justice at the request of ...

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Editorial - February 2019

Vania FranceschelliVania Franceschelli
Member of Fecif Board of Directors & Foreign Affairs, Anasf

ESG – growing in importance for everyone!

From a recent survey carried out by a famous global investment company, 46% of investors want to focus more on sustainability criteria for their portfolio choice and as a result 93% of fund managers cannot fail to take this into account in monitoring the company in which...

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Editorial - December 2018

Jirí ŠindelárJiří Šindelář
Deputy Chairman FECIF

Unique Research: In the first two years of the FECIF Expertise initiative, what have we learned so far?

It has been two years, since FECIF started its Expertise initiative, a huge push for greater and better knowledge about the pan-European financial advice and intermediation sector. Since I have been honoured to chair the whole project among...

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Editorial - October 2018

Daphne FoulkesDaphne Foulkes,
Board Member of FECIF, Chairperson of FEPI, and Partner at The Spectrum IFA Group

The Insurance Distribution Directive – Are you ready?

Since 2005, insurance intermediaries have operated under the rules of Directive (2002/92/EC) – the Insurance Mediation Directive (IMD). This has now been replaced by the EU Directive 2016/97 – the Insurance Distribution Directive (IDD)...

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Editorial - August 2018

Vincent J.DerudderVincent J.Derudder
Honorary Chairman

Crisis in Europe?

Europe is going through a very serious crisis and so is the EU financial services industry.

To focus on some basic indicators, the world today is made up of a homogenous block of four dominant countries (the US, Russia, India and China) representing 4 billion people and..

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Editorial - June 2018

Jirí ŠindelárJiří Šindelář
Deputy Chairman FECIF

Did we become hostages to ever-increasing regulation?

According to most common sources, Stockholm syndrome is a type of psychological bond between hostage and their hijacker, when the former develops emotional ties to a person that beats, abuses or generally hurts him or her. Plainly sad, it is....

>> CONTINUE READING

Editorial - April 2018

Vania FranceschelliVania Franceschelli
Member of Fecif Board of Directors & Foreign Affairs, Anasf

IDD and MiFID II. Beloved sisters or competing friends?

Time has come. On 19 March the amendment postponing the application date of directive 2016/97 (Insurance Distribution Directive - IDD) has been published in the Official Journal of the European Union. By 1 July Member States shall thus adopt and publish all the laws...

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Editorial - February 2018

Daphne FoulkesDaphne Foulkes,
Partner, The Spectrum IFA Group and FECIF Board Member

Will your pension sustain you through retirement?

It is widely known that Europe’s ageing population is a problem for EU Member States. Quite simply, people are living longer and this impacts on the sustainability of State pension systems, referred to as...

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Editorial - December 2017

David CharletDavid Charlet
FECIF & ANACOFI Chairman

Beyond robo-advisors, what might the future be for following generations?

The media seems to have only one word to say at present, when explaining our future: robots! Is it time for robo-advisors to replace our human members?
If you take a look to some of our previous editorials, written by our Secretary General or some of our members, you will...

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Editorial - October 2017

Dhruv MehtaDhruv Mehta,
Chairman of the FOUNDATION OF INDEPENDENT FINANCIAL ADVISORS

Evolution and Regulatory Challenges – Lessons from India

The Foundation of Independent Financial Advisors (FIFA) is a body representing Advisors and Distributors of Mutual Funds in India, commonly known as Independent Financial Advisors (IFAs).
During my recent meeting with FECIF I realised the common...

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Editorial - August 2017

Jirí ŠindelárJiří Šindelář
Member of FECIF board of directors

How Vox Populi in Europe is (sometimes) being portrayed

Two weeks ago, my home city of Prague hosted an important event: the Joint ESAs’ Consumer Protection Day. This is an event that forms an important part of the regulation agenda and according to its organisers should “discuss issues related to consumer...

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Editorial - June 2017

David CharletDavid Charlet
FECIF & ANACOFI Chairman

Europe as financial advisers see it

A long time ago, the European Union used to be a place for the production of coal and steel. Nowadays, it seems to be a global Union far more engaged than the US with our jobs and other matters. Consider: in the US no would find “passports” for...

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Editorial - April 2017

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Are you really ready for the future?

“The other day Ray was having a conversation with his 13 year old son and they ended up on a topic / issue that they needed more info on – his response was to “Google” it, his son chose to “YouTube” it. He realised at that point that they had different ways of looking for information, learning answers, and engaging with...

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Editorial - February 2017

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Transparency not commission is the real key for 2017 and beyond

A number of industry commentators keep stating that it’s now all about the end of commission on a global basis – but is it, really? We all know of the switch to fees in the UK, and also a small number of other locations around the world, but certain other jurisdictions have also been quoted as moving in that direction, only for regulators in...

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Editorial - December 2016

Paul ResnikPaul Resnik
Cofounder & Director of Finametrica

Robo 3.0

Robo advisors are, beyond any doubt, hugely disruptive to the financial advice market. But not in the way that many people expect.

Many commentators and analysts are still focused on trying to pick the ‘Uber moment’, when robos wipe out the old world by...

>> CONTINUE READING

Editorial - October 2016

Schroders Investment ManagementSchroders Investment Management

Over confident investors and the help they need

Investors thinking they know more than they do about investing could cause problems when it comes to their future financial planning.

Investors could be missing out on billions of Euros in investment returns by over estimating their own ability to understand...

>> CONTINUE READING

Editorial - August 2016

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Robo-advice financially unviable

The above was the main content of an article in a financial industry publication last month. This was based on a recent study, which found that UK robo-advisers are structured in such a way that they will lose money and “most will go bust before acquiring the sizeable assets under management needed to survive”.

Food for thought, not least for regulators – many of whom seem...

>> CONTINUE READING

Editorial - June 2016

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Do consumers and advisers finally have the same goals?

Over the last year or two it has struck me that the increasing complexity of regulation is not only being seen in a negative light by the financial advisory and intermediary market – there are also growing concerns being expressed by consumers and, in particular, consumer groups, that this is having a negative impact on the public at large.

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Editorial - April 2016

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Interesting implications for the rest of Europe and beyond?

Last month saw the publication of the results for the UK’s Financial Advice and Market Review (FAMR). Whilst this might not have had much in the way of impact elsewhere across Europe, it perhaps should have done...

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Editorial - February 2016

Jirí ŠindelárJiří Šindelář
Member of FECIF board of directors

The Brussels’ Circle of Overregulation

Even though the European Union was given a series of warnings regarding its effort to regulate anything and everything, it did not slow down. Despite proclamations about “changing the course” and “smart regulation”, from November to December...

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Editorial - December 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Robo-advice: fact and fiction

I have lost count of the amount of articles about so-called robo-advice. It certainly is the “flavour of the month” and, if we believe all that we hear, will soon become the most important element in the delivery of financial services. I have some strong views on this….

>> CONTINUE READING

Editorial - October 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Where now for commissions?

European regulators eventually “stood back from the brink” and within the agreed text of both MiFID 2 and the IDD (Insurance Distribution Directive) fell short of a complete commission ban – a ban that many thought might well happen as little as 12 months ago!...

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Editorial - August 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

The importance of effective representation

The compromise text for the Insurance Distribution Directive (IDD) was recently finalised and it was very pleasing to see that the vast majority of the proposals put forward by FECIF in the recent consultation period have been heeded.

>> CONTINUE READING

Editorial - June 2015

Garry HeathGarry Heath
Director General Libertatem

Garry Heath announced the launch of Libertatem last month, a new trade association set up to represent all types of financial advisers based in the UK. His thoughts and plans are outlined below – they have great relevance to the rest of Europe.

Over the last decade the industry has lost sight ...

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Editorial - April 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

10 reasons to use a Financial Adviser

Many people have the perception that only the very wealthy need financial advice. However, the facts are that anyone can potentially benefit from such advice...

>> CONTINUE READING

Editorial - February 2015

Garry HeathGarry Heath
Journalist, The Heath Report assured

IFAs: Support trade associations or jeopordise independence

The last month has been one of travel. Firstly a symposium to address in Toronto and then it was Brussels and the FECIF conference...

>> CONTINUE READING

Editorial - September 2014

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Our immediate goals

I was very pleased to be elected as the new Secretary General of FECIF at our last Board meeting, it is very much an honour to represent a body that supports and promotes the adviser...

>> CONTINUE READING

Editorial - December 2023

Josep Soler-AlbertíJosep Soler-Albertí
EFPA Spain’s Executive Director
FECIF’s Board Director

The continuous and mostly unnoticed European impoverishmen

Anyone who has had the opportunity to recently travel around the United States will have easily noticed a widespread increase in prices, particularly perceived by those whose reference currency is...

 >> CONTINUE READING

Editorial - October 2023

Simon ColbocSimon Colboc
FEPI Secretary General

Pension Savings meet green transition: could non-listed assets help solve Europe’s pension gap?

European policymakers are pushing hard to develop Europe’s financial markets, at a time when it seems our stock-markets are losing the fight against their US competitors (How the US is crushing Europe’s...

>> CONTINUE READING

Editorial - August 2023

Vania Franceschelli Vania Franceschelli
Chairperson

Increasing retail investors participation in capital markets

One of the points within the agenda of the European Commission focuses on increasing retail investors’ participation in the capital markets.
To this end, Mrs. Mairead McGuinness, the European Commissioner for Financial...

>> CONTINUE READING

Editorial - June 2023

Jirí ŠindelárJiří Šindelář
Former FECIF deputy chairman
Chairman of the Czech Association of Financial Advisers and Intermediaries (ČASF)

For the people!

The recently published European Commission statement on the Retail Investment Strategy (RIS) sparked relief among many financial professionals. The huge social engineering project of a ban on investment commissions was...

>> CONTINUE READING

Editorial - April 2023

Vincent DerudderVincent Derudder
Honorary Chairman & Board member

Crisis in Europe?

The European Union is going through a very serious crisis, and so is the EU financial services industry, because of the war launched by the Russians in Ukraine, plus the tensions in the markets, and so many areas of the world.
Europe encompasses about 550 million people and the rest of...

>> CONTINUE READING

Editorial - February 2023

Paul StanfieldPaul Stanfield
FECIF Secretary General

Perhaps we get what we deserve?

Back in 2015, a newly-launched UK trade association raised concerns of serious importance that were – and have been - extremely important in other countries too. I wrote about those at that time and many are still issues today; some are even greater problems now, or likely to become...

>> CONTINUE READING

Editorial - December 2022

Vania Franceschelli Vania Franceschelli
Deputy Chairwoman

Overview of the amendments proposed on MiFID and MiFIR

At the end of 2021, the European Commission presented a Regulation proposal (2021/0385) to amend the MIFIR Regulation (600/2014 EU) aiming at improving the transparency of market data, the elimination of obstacles to the emergence of a consolidated...

>> CONTINUE READING

Editorial - October 20221

Louis WilliamsLouis Williams
Head of Psychology & Behavioural Insights at Dynamic Planner
Attitude to financial risk across Europe

Attitude to financial risk across Europe

As we begin to witness a shift in saving intentions and behaviours by households across Europe, it is somewhat surprising that a lack of research exists comparing attitudes to risk. Arguably, understanding...

>> CONTINUE READING

Editorial - August 2022

Johannes MuschikJohannes Muschik
FECIF Board Member

Less insurance, more security

The Member States of the European Union require insurance intermediaries to have professional liability insurance of at least EUR 1,250,000 for each individual claim and EUR 1,850,000 for all claims in a year. This is what the EU Insurance Distribution Directive (IDD) requires. The aim of the...

>> CONTINUE READING

Editorial - June 2022

Paul StanfieldPaul Stanfield
FECIF Secretary General

The next 10 years

I recently came across an article that I wrote in December 2015 and immediately wondered whether what I had written had come to pass, in any way, shape or form. Without wanting to sound immodest, my predictions appear to have been fairly accurate and in a shorter timescale – but...

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Editorial - April 2022

Fernando ZunzuneguiFernando Zunzunegui
Member of the Advisory Committee

Knowledge gives us autonomy

This statement, that could easily be agreed by anyone, is even more true when we are talking about professionals in any field. Professionals are defined precisely for their technical capacity and their independence of criteria, and these skills depend on their knowledge...

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Editorial - February 2022

Vania Franceschelli Vania Franceschelli
Deputy Chairwoman

The need to regulate the robo adviser industry by focusing on investor protection

Robo advisers are attracting growing interest in the financial arena, but at the same time there is a lack of awareness and knowledge on how to approach this world. As the use of these services could rise in...

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Editorial - December 2021

Simon ColbocSimon Colboc
FEPI Secretary General

A shift for long-term savings in Europe?

A recent study by CMI Strategies has revealed interesting trends about long-term savings in France and in Europe.
There is a growing discrepancy in Europe between the need to increase long-term savings (not least for retirement) and...

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Editorial - October 2021

Vania Franceschelli Vania Franceschelli
Deputy Chairwoman

What do people think about a digital Euro?

What are the opinions of European citizens on a digital Euro? The picture offered by the European Central Bank public consultation sheds some light.

The Eurosystem, which comprises the European Central Bank and ...

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Editorial - August 2021

Josep Soler-AlbertíJosep Soler-Albertí
Executive director, EFPA Spain

Banks and investments, not yet safe from the Covid-19 crisis

It is time to make a first count of the economic harm of the pandemic crisis, although not all damage has occurred yet.

Firstly, we have all those companies that, disconnected from the artificial respirators, will definitely set sail...

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Editorial - June 2021

Paul StanfieldPaul Stanfield
FECIF Secretary General

Treating clients fairly?

This is a term that the UK regulator, the FCA, has used extensively – particularly with regards to the advisory sector – and has been, albeit slightly differently phrased, at the core of all relevant EU regulations in recent years. And rightly so – putting the client at the centre of the whole process and...

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Editorial - April 2021

Josep Soler-AlbertíJosep Soler-Albertí
Executive director, EFPA Spain

Challenges for financial advice in the post-Covid recovery

Although still with insufficient strength, we are probably at the beginning of the economic recovery. After more than a year accompanying clients in a journey of unprecedented health and economic crisis, we are heading for a change...

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Editorial - February 2021

Vania Franceschelli Vania Franceschelli
Deputy Chairwoman

The ELTIF: concrete help to support the EU capital markets union

ELTIFs (European Long-Term Investment Funds) are closed-end mutual funds that provide repayment of capital at maturity. They were introduced by EU Regulation 2015/760 to incentivise long-term investment in...

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Editorial - December 2020

Paul StanfieldPaul Stanfield
FECIF Secretary General

Trust, Technology, Sustainability & Intergenerational Wealth: The Future of Financial Advice?

These were four of the key aspects highlighted during the inaugural FEIFA Autumn Conference Series, which took place throughout November...

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Editorial - October 2020

Paul StanfieldPaul Stanfield
FECIF Secretary General

Only a quarter of advisers always consider ESG investments

This was one of the significant findings of the recent, unique, ESG survey conducted by FECIF.
Whilst it was found that over 90% of financial advisory professionals considered ESG investments some of the time, just 23% did...

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Editorial - August 2020

Paul StanfieldPaul Stanfield
FECIF Secretary General

FECIF: leading the way in ESG advice

I am very pleased to announce that we are presently conducting unique research in the area of ESG (Environmental, Social and Governance) and Financial Education.
As the Federation (www.fecif.eu) is a pan-European trade associatio...

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Editorial - June 2020

Simon ColbocSimon Colboc
FEPI Secretary General

Advice in the time of Coronavirus

Our entire continent is only now coming to grips with the first impact of the COVID-19 epidemic in terms of lives and health but also human interaction and economics. In a way, we are shell-shocked, and it is difficult to start thinking beyond the immediate future. However...

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Editorial - April 2020

Simon ColbocSimon Colboc
FEPI Secretary General

How Europeans are REALLY preparing for retirement

Europeans are taking retirement planning into their own hands
European policymakers and practitioners are undertaking fundamental reforms of existing pension structures, adapting non-pension assets that are used for support in retirement and creating...

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Editorial - February 2020

Vania Franceschelli Vania Franceschelli
Deputy Chairwoman

A Code of Conduct for Professionals

Financial advisers play a key role in helping citizens meet their goals and make informed investment decisions, with particular regard to the value of financial planning and the enhancement of financial education.

Recognising this important role, and the need for...

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Editorial - December 2019

Martin KleinMartin Klein
Managing Director at Votum &
Member of FECIF Board of Directors

Gold-plating continues to undermine the single European market

Is Germany on its way to becoming a planned economy by introducing a commission ceiling in the insurance industry?
German governments like to see themselves in the position of...

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Editorial - September 2019

Vania FranceschelliVania Franceschelli
FECIF Secretary General & Foreign Affairs, ANASF

The future rests on education

Financial literacy and education are key elements of the path to economic growth and social inclusion in the European Union. At the same time, it is important to remember the 2030 Agenda for Sustainable Development, adopted on 25 September 2015 by...

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Editorial - July 2019

Daniel GLASNER Daniel GLASNER
CEDR Accredited Mediator, Honorary Member of GSCGI and an Independent Financial Advisor at ACTION FINANCE SA

Dispute resolution – the Swiss way

In Switzerland, mediation will become mandatory in disputes relating to asset management and financial advice as set by the new Financial Acts FinIA and FinSA that will come into effect on January 1st 2020.

What’s new? Switzerland often successfully acts as Mediator in settlements of international conflicts. However...

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Editorial - May 2019

Vania FranceschelliVania Franceschelli
FECIF Secretary General & Foreign Affairs, Anasf

MiFID II costs disclosure. Nothing is flawless, not even regulation

On March 28, ESMA, the European Securities and Markets Authority, updated its Questions and Answers (Q&A) document on the implementation of investor protection under MiFID II. The periodic update of the Q&As can be appreciated from different points of view...

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Editorial - March 2019

Simon ColbocSimon Colboc
FECIF Advisory Committee member

A PEPP saga update: pep or dud?

FECIF readers are now familiar with the European project to create a cross-border market for individual pension savings, the Pan-European Personal Pensions (PEPP) initiative.

Since this initiative first surfaced about three years ago...

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Editorial - January 2019

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

2019 – the year of the robo?

Happy New Year! And what a year it may well turn out to be.

Despite the deluge of Regulations and Directives in 2018, I believe that it will be the next 12 months when we will see and feel the true effects of these.

In addition, will 2019 see the true rise of so-called robo advice?...

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Editorial - November 2018

Jirí ŠindelárJiří Šindelář
Deputy Chairman FECIF

Are the regulators finally showing common sense?

During FECIF´s prestigious conference last week in Brussels, I started seriously thinking that after all, European regulators might be gaining some common sense in their thinking. Quite a heretical thought for a classical liberal, is it not? But when I heard MEP Mr. Markus Ferber talking about the PRIIPs KID being wrong...

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Editorial - September 2018

Daphne FoulkesDaphne Foulkes,
Board Member of FECIF, Chairperson of FEPI, and Partner at The Spectrum IFA Group

Next step for the PEPP saga

To date, many organisations have submitted detailed responses to the European Commission’s (EC) draft PEPP Regulation, which was published on 29th June 2017. There is strong consensus for the merit of the PEPP, both by the Trilogue participants (European Commission...

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Editorial - July 2018

David CharletDavid Charlet
FECIF & ANACOFI Chairman

What sort of summer for intermediaries and Europe?

And now comes the time for holidays for most citizens in Europe, but also time for everyone in their offices to have a couple of quieter weeks, dedicating their work to more fundamental tasks like reviewing their processes or closing late files that...

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Editorial - May 2018

Simon ColbocSimon Colboc
Member of Fecif Advisory Committee

The PEPP saga: what does it mean for advisors?

Anyone interested in the future of pensions should welcome the European initiative on the Pan European Personal Pension products (PEPP). Retirement provision is a major issue facing all European countries, hit by a combination of increasing...

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Editorial - March 2018

Jirí ŠindelárJiří Šindelář
Deputy Chairman FECIF

How much do we pay for over-regulation?

Over-regulation of financial services in the European Union is a well-recognised fact, even among the bureaucracy in Brussels. The key feature of all those MiFIDs, IDDs or GDPRs, however, is not its devastating effect on the (small and medium-sized) businesses themselves, but its detrimental cost to the customer...

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Editorial - January 2018

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

The moment I realised the value of (human) advice

This was (almost) the title of an article I recently read – and which reminded me of the fact that many advisers don’t always realise just how much positive impact they have on people’s lives. Or where that impact is most beneficially experienced by the client...

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Editorial - November 2017

Vania FranceschelliVania Franceschelli
FECIF Board Member and Regional Manager of the ANASF financial education programme

The social value of financial education

If I consider my personal experience as a financial advisor and, more generally, the provision of investment services to citizens, I can envisage two concepts for the future of our professional activity: investor protection and financial education. On the one hand, investor...

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Editorial - September 2017

Daniel GuéguenDaniel Guéguen
Head of Strategy and Lobbying at PACT European Affairs

A journey through the EU Institutions

Every year before the start of the summer break, I treat myself to a journey through the EU Institutions. I say ‘treat’ because it is a real pleasure for me to speak freely and in full confidence with elected politicians, senior civil servants, head lobbyists and representatives from...

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Editorial - July 2017

Vania FranceschelliVania Franceschelli
FECIF Board Member & ANASF Executive Committee Member

Product governance requirements will lead to greater quality of advice

Product governance requirements represent one of the most outstanding innovations of MiFID II, aiming at ensuring that firms which manufacture and distribute financial instruments act in the clients’ best interests during all the stages...

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Editorial - May 2017

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

The value of advice – and the cost of being unadvised

There have been numerous studies over the years that have shown the value of good quality financial advice – not least, the fact that clients that receive it are, in general, significantly better off in retirement and much more financially protected during their life journey towards that point...

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Editorial - March 2017

Vania FranceschelliVania Franceschelli
FECIF Board Member & ANASF Executive Committee Member

We need new market propositions not unnecessary bans

The final date for the transposition of MiFID II in each Member State – January 3rd 2018 – is fast approaching. Is it possible to see some initial insights into the industry, in order to foresee the impact of the Directive on business models? In particular...

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Editorial - January 2017

Daniel GuéguenDaniel Guéguen
Head of Strategy and Lobbying at PACT European Affairs

2017: action, action, action

”My right flank is destroyed, my left flank is in retreat, everything is fine – attack!” Those were the words of General Foch in the darkest moments of World War One. We are there once again. Sink or act – that is the choice we have.

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Editorial - November 2016

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Playing your Trump card

Well, for those of us surprised by the Brexit vote - and there were plenty in the City of London that is for sure – the US election creates a whole new perspective with regards to astonishment, and on a much wider spectrum. I don’t know what it says about Hillary Clinton and her campaign – well, on reflection, I probably do – but the fact that Trump won, allied to the UK’s EU...

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Editorial - September 2016

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

“The reports of my death have been greatly exaggerated”

This famous quote was a statement made by Mark Twain on hearing that he had been mistakenly announced dead. Although it is apparently a slight misquote, the meaning remains very much in line with what the great writer intended. It also came to my mind the other day when I was once again thinking about so-called “robo-advice” and...

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Editorial - July 2016

John WestwoodJohn Westwood
FEIFA Board Member and Blacktower Group Managing Director

Brexit: a disaster or something far less worrying?

The British electorate has given its verdict on the UK’s membership of the European Union in no uncertain terms but, in spite of some emotional appeals to the contrary, this is not a disaster.

It is worth remembering that on the 20th February 2016, when David Cameron announced that the EU referendum would...

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Editorial - May 2016

Rebecca MurphyRebecca Murphy
Director of Sales & Marketing at Praemium
Re-engaging the investor

Re-engaging the investor

It’s rough sailing right now for investors and savers alike! Volatile markets and low interest rates are the norm, and investors are bombarded with information about products and services without understanding how any of it relates to them...

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Editorial - March 2016

David DentonDavid Denton
Member of FECIF board of directors

You can run, but you can’t hide

The Organization of Economic Cooperation and Development’s (OECD) Common Reporting Standards (CRS) - also known as Automatic Exchange of Information - is gathering pace post FATCA. For decades, developed economies have wrestled with the notion that wealth overseas, whilst not illegal...

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Editorial - January 2016

Hans-Jürgen BretzkeHans-Jürgen Bretzke
CEO of FinanzAdmin  GmbH

Some of the myths surrounding fintech companies

“I would go so far as to say that any broker armed with an average customer base and network is better placed than a fintech company on the strength of his or her client contacts alone.”

In this guest contribution, Hans-Jürgen Bretzke, a member of ...

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Editorial - November 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Pension provision - is this the real “gap”?

The “advice gap” has received considerable coverage in the personal finance pages and trade press for some time now, across the UK in particular but it is also a growing concern across Europe and beyond. I wonder, however, if the focus should really be on the “pension’s gap”...

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Editorial - September 2015

Vania FranceschelliVania Franceschelli
Member of the Board of FECIF / Member of the Executive Committee of ANASF (Head of Foreign Affairs)

In July FECIF sent its contribution to the ESMA Consultation Paper on the Draft guidelines for the assessment of staff knowledge and competence under MiFID II. This Consultation Paper is of outmost importance for all financial advisors in Europe, as it provides the basis for the definition of the qualification and...

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Editorial - July 2015

Paul StanfieldPaul Stanfield
Chief Executive at FEIFA / FECIF Secretary General

Making regulation more effective and accountable

The month of May saw the launch of a new trade association in the UK, as highlighted in last month’s editorial. It seems to me that its aims and concerns are highly important elsewhere in the EU.

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Editorial - May 2015

Johannes MuschikJohannes Muschik
Chairman of FECIF, Chairman of AFPA

New Chairman takes office

Back to my desk after our Annual General Meeting where I have been elected as Chairman for the period 2015/2016.  The AGM was also an opportunity to exchange views on a number of hot topics concerning our industry...

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Editorial - March 2015

Jirí ŠindelárJiří Šindelář
Chairman of USF CR / Member of the board of FECIF

Squaring the circle, or back to roots? A view of European regulatory turmoil from the former “Eastern Bloc”

When the Velvet revolution overthrew the Czech communist government in 1989, a crucial part of the change was the transition to liberal...

>> CONTINUE READING

Editorial - December 2014

Graham ReidGraham Reid
Managing Director at Classic Financial Solutions CVBA

The true worth of an adviser

A few years ago one of our clients suffered a nervous breakdown.  After early retirement he had continued working as a consultant from a small office at home, from where he also managed the family finances, something in which ...

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Editorial - July 2014

David CHARLETDavid CHARLET
ANACOFI

For my first editorial as President of FECIF, I would like to thank every member of the Board, the General Assembly and the Staff.
I would also express a special thought for Daniel Nicolaes, one of the best representatives of our profession in Europe, who disappeared a few months ago.

>> CONTINUE READING

 

 

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