Check the little ones for financial advice. The companies that provide this service (EAF) and that do not have a turnover of at least 100 million euros They will not be viable. So resounding is the president of Aseafi, one of the two employers who group the sector. The EAF number decreased 10% last year, since some have merged with each other and others have been converted to a securities agency.
Nowadays, there are 143 EAF in Spain and, according to several experts from the sector who gathered at the conference ‘Outlook, selection and positioning 2020’, organized by Aseafi, "There are half of them left over." For the sector to be more efficient, they should survive only between 70 and 80 EAF, the strongest, and even, "some would still be in trouble." The average EAF advises between 60 and 100 million euros, invoices 300,000 euros and employs three professionals. "It's a microenterprise," Pedro Suárez, managing partner of the Transactions department of EY.
Despite this touch of attention, the president of the advisory board, Carlos García Ciriza, does not hesitate to send a message of encouragement to the EAF: “Throwing in the towel is the last of the options. We do a lot of good to the Spanish financial system. ”
BALANCE OF AGENTS
With the transposition of MiFID II in Spain, a window opened to the agents in the EAF, but with a condition. EAFs can now hire financial agents, one of their historical claims, as it lowers their structure and helps them grow, although these They can only attract customers and not advise their assets.
At the moment, the balance are five agents registered in three EAF. The first agent of an EAF was Libreinnova, by Iván Prieto, who partnered with GAR Investment Advisors in Galicia last September. “The regulator fell short on the issue of agents. It is very expensive to integrate them for what little they can do ”, criticizes García Ciriza.
Another aspect, and this one is central, of MiFID II is the explicit payment by the clients of the financial advice. But this battle is not won yet. "Few EAFs charge explicit advice, there is still a lot of backlash from the funds and most EAF net." But the president of Aseafi believes that "it will get there" over time, to make the investor aware of the work done by the advisor with his assets and pay for it explicitly.
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