german financial planning market_ thomas abel

8/2/2019 German Financial Planning Market_ Thomas Abel

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Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

Zeist, 24.01.2012


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history

First steps in financial planning in the late Eighties

First education programs were built in the Nineties

Early market movers were major banks, like Commerzbank,

Deutsche Bank, HypoVereinsbank

Big insurance companies like Gerling and Allianz tried to

step into the market

Most of these first movers lost confidence in this newsegment of financial consulting and closed there subsidiaries

down


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today

financial planning is offered by a lot of market players:

banks, insurances, financial service providers, self employed

financial advisors

there are still some problems to establish financial planning

in Germany, especially as a fee based service

But the service itself is established and will grow in the

future, especially against the background of the MiFID-

directive


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market requirements for a successful financial planning

long term experience in financial services

qualification

continuing education

soft skills


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provider of financial planning services

large banks (Deutsche Bank, HypoVereinsbank, UBS,LBBW)

private banks (MM Warburg, Merck Finck, HSBC Trinkaus& Burkhardt)

Insurances (Gerling)

financial service providers (AWD, MLP, Bonnfinanz, ZSH,Global Finanz)

fee based consultants (HONORIS Treuhand GmbH, NiklasBerliner Honorarberater, Luetzel Finanzplanung)


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asset management forcustomers (minimum assets

100.000 EUR), managementfee ca. 1% + VAT)

financial and estate planningservices, hourly rate 150

EUR + VAT advice and services in real

estate, closed end funds andloan

lecturer in financial planningclasses for Frankfurt Schoolof Finance & Management

HONORIS Treuhand GmbH what we do

www.honoris-gmbh.de


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qualification programs

Financial Consultant/ Financial Planner/ Estate Planner(Frankfurt School of Finance and Management)

Finanzkonom / Estate Planner (European Business School)

Estate Planner (AEPD GmbH) Financial Planner (MLP Corporate University, University

Regensburg)

Zertifizierter Finanzplaner (university of applied sciences

Frankfurt) et al.


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established certification programs

Certified Financial Planner (FPSB) [1.300 members; 140.000worldwide!]

Certified Foundation and Estate Planner (FPSB) [100 members]

DIN/ISO zertifizierter Finanzplaner (ISO Nr. 22222) (FPSB/ ISO)

Certified Estate Planner (VEPD) [250 members]

The European Financial Advisor (FA) / European FinancialPlanner (FP) (certification over FPA) has no market relevance in

Germany, mostly because of its late arrival in the German market


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clients and market targets

bank customers upward private banking size

high income individuals (medics, pharmacists, managers, et al.)

retirees

wealthy clients with inheritance tax problems are key targets forestate planning services


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compensation models

fee only: including a wide range from 50 Euro up to more than

10.000 Euro

without fee: payment only by commission earnings

mixed calculation by fee and commission


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best practice for the clients

Financial Planning should be based on the objectives and wishes of the

client

the planner has to develop a individual strategy

interdisciplinary approach by integration of tax advisors and lawyers use of competitive biddings as an advantage for the client (asset

management, insurances, et al.)

breakup between financial planning and transactions or sale

Financial Planning should be seen and lived as a continuing process


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outlook

MiFID will bring a rise in market transparency

this should cause a shift into a more accepted fee based advisory

in Germany

winners will be companies with a transparent compensation and

advisory model

and: qualified Financial and Estate Planners!


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managing director

HONORIS Treuhand GmbH

Wangenheimstr. 11

14193 Berlin

Tel.: +49 30 83218574-0

Fax: +49 30 83218574-9

Mobile: +49 174 9363135

Thank You!


chairman

network financial planner e. V.

Berlin

www.nfpb.de

german financial planning market_ thomas abel

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