In France, UCITS are primarily distributed through traditional distribution channels (63%): banking networks, insurance companies and private banks, and mainly under special tax schemes (unit-linked life insurance contracts, etc.).
Nonetheless, current studies show:
- Private individuals do not fully trust their banks to provide advice on savings products (source: ‘Bank-customer relations’, Deloitte 2013
- An unsatisfied need in terms of pension products (nearly half the active population places pensions issues in the top three savings priorities
and more than half the active population says they require help when making pension choices (source: ‘The French prepare their retirement’,
Deloitte 2012 Barometer)
A profound change in consumer behaviour related to the customer experience of the X, Y and Z generations, characterised by a preference for online information and the need to compare and choose for oneself
The entry into effect of MiFID 2 (2017), and more particularly, IMD (2018) could accelerate these underlying trends and trigger structural change in the asset management business model in continental Europe. Accordingly, an analysis of U.S. and UK precursors in terms of regulation and savings behaviour could provide insight into future developments in the organisation of savings distribution. In the United Kingdom, where advisory services became directly payable (banning retrocessions for all advisors) in 2012 (application of the Retail Distribution Review, the text that inspired MIF2), consumers have become particularly attentive to the cost of asset advisors and the value of advice provided. As a result, 32% of investors now prefer to do their own financial research and planning, according to a Deloitte UK study covering a sample of 2,140 British adults in June 2012. In the same study, 27% of individuals questioned favoured direct investment with financial product providers. Such platforms naturally have a disruptive influence on traditional distribution channels, and now account for close to 50% of sales to private individuals (compared with 37% in 2010, according to IMA statistics). This digitalisation of the distribution of financial products to private individuals can, of course, also be observed on the other side of the Atlantic.
Performance issue 16 - January 2015
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.