Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Market structure 2
Regulatory developments 2
Customer demands 2
Table of Contents 3
Table of figures 4
Table of tables 5
Market Structure 6
There are strong differences between the financial intermediary market in Belgium and the Netherlands 6
Belgium and the Netherlands have a small financial intermediary market, amassing only 12,000 financial advisors between the two countries 6
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 7
Tied advisors account for sizable components of both intermediary markets but play a more important role in the Belgian market 8
Regulatory Developments 11
A number of government bodies control regulation of the financial markets in the Netherlands 11
In the Netherlands, the AFM is responsible for the monitoring of financial advisors 11
The Banking, Finance and Insurance Commission is responsible for the supervision of the Belgian Market 11
The CBFA enforces the registration of financial intermediaries 11
The European Commission has introduced a number of regulatory reforms affecting the financial advice distribution channel in Belgium and the Netherlands in recent years 12
Insurance Mediation Directive allows cross-border advice 12
Markets in Financial Instruments Directive increases the suitability of advice 12
Compliance has been varied in the Belgo-Dutch region 13
Negative press coverage and new legislation forcing advisors to reveal commission rates may initiate the move towards fee-based financial advice 13
Negative press attention brings fee-based business models closer to viability but its day is not yet here 13
Regulation is in the pipeline to reveal the amount of commission advisors receive when selling FS products 14
Changes in the provision of pensions looks set to increase the role of intermediaries, with opportunities in the Netherlands looking particularly interesting 14
Servicing Customers 15
Belgo-Dutch HNWs appreciate the risk-return relationship and look to reap higher rewards for their sturdy risk appetites 15
Belgo-Dutch HNWs combine strong risk appetites with below-average knowledge of products and market understanding 15
Belgo-Dutch HNWs are looking to take advantage of the market turbulence, bearing more risk to gain potentially higher returns 18
HNW demands for the future revolve around high risk, high return products 20
An interest in direct equity and margin lending signposts Belgo-Dutch HNWs high return preferences 20
Belgo-Dutch HNWs are looking for mispriced equities and are not averse to doing so unaided 22
Belgo-Dutch wealth managers reveal the best strategies to increase wallet share and customer retention 23
CRM and face-to-face contact are the most effective techniques for driving wallet share in the Belgo-Dutch region 23
Pro-activity with investment suggestions drives customer retention 24
The Netherlands' retail customers are not yet convinced by professional financial advice 25
APPENDIX 30
Definitions 30
Methodology 30
Further reading 31
Ask the analyst 31
Datamonitor consulting 31
Disclaimer 31
List of Tables
Table 1: Market share breakdown by type of intermediary: Belgium and the Netherlands vs. European average 10
List of Figures
Figure 1: The Belgo-Dutch markets are much smaller than their European neighbors 6
Figure 2: The prevalence of agents distributing L&P varies between Belgium and the Netherlands 8
Figure 3: Belgium and the Netherlands have quite similarly structured intermediary markets 9
Figure 4: Belgo-Dutch HNWs reveal strong appetites for risk coupled with average knowledge and understanding 16
Figure 5: The high risk appetite is tempered by an understanding of the risk return relationship 17
Figure 6: Belgo-Dutch HNWs are demanding very different products from those seen from the European average 19
Figure 7: Interest in direct equity investment and margin lending once again highlights the robust Belgo-Dutch risk profile 21
Figure 8: Mistrust of banks has caused Belgo-Dutch HNWs to consider managing their own money 22
Figure 9: CRM is particularly effective in the Belgo-Dutch region 24
Figure 10: Being proactive is essential to maintaining a client base in the Belgo-Dutch region 25
Figure 11: Dutch consumers reveal a mixed response concerning professional financial advice 26
Figure 12: Dutch consumers are showing a preference for advice from their primary bank 27
Figure 13: Dutch consumers fly in the face of the global trend and are not shopping around more for financial products 28
Figure 14: There are lower levels of trust in financial advisors within the Dutch market compared to other markets globally 29
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