The advisor and planner profession in Germany

Zeist, 24.01.2012
Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

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 new segment of financial consulting and closed there subsidiaries down

Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

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 MiFIDdirective
Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

market requirements for a successful financial planning
long term experience in financial services qualification continuing education soft skills

Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

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, Niklas Berliner Honorarberater, Luetzel Finanzplanung)

Thomas Abel, CFP, CFEP

HONORIS Treuhand GmbH what we do

asset management for customers (minimum assets 100.000 EUR), management fee ca. 1% + VAT) financial and estate planning services, hourly rate 150 EUR + VAT advice and services in real estate, closed end funds and loan lecturer in financial planning classes for Frankfurt School of Finance & Management
Thomas Abel, CFP, CFEP

www.honoris-gmbh.de

The advisor and planner profession in Germany

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.

Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

established certification programs
Certified Financial Planner (FPSB) [1.300 members; 140.000 worldwide!] 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 Financial Planner (FP) (certification over FPA) has no market relevance in Germany, mostly because of its late arrival in the German market

Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

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 for estate planning services

Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

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

Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

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

Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

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!

Thomas Abel, CFP, CFEP

The advisor and planner profession in Germany

Thomas Abel, CFP, CFEP managing director HONORIS Treuhand GmbH Wangenheimstr. 11 14193 Berlin Tel.: +49 30 83218574-0 Fax: +49 30 83218574-9 Mobile: +49 174 9363135 Thomas Abel, CFP, CFEP chairman network financial planner e. V. Berlin www.nfpb.de

Thank You!
Thomas Abel, CFP, CFEP