Open architecture used in 79% of Italian financial adviser networks
Open architecture is more widely used among the independent financial adviser networks in Italy than even in the UK, according to a new study.
The study found that 79% of Italian promotori finanziari, or financial advisers, used third party products, compared to the UK’s overall market score of 75%.
However, open architecture still only has a limited presence elsewhere in Italy’s financial services sector, including private banks, retail banks, insurance groups or other distribution channels.
Overall, only 12% of the Italian market is open to third-party products. Italy is more open than Scandinavia (6%) and Spain (7%), level with France (12%), but decidedly more closed when compared with Germany (36%) and Switzerland (37%). The UK is the runaway market leader in open architecture, with 75%.
The study was conducted by the Centro Arcelli per gli Studi Monetari e Finanziari of the LUISS Guido Carli university, in association with Assoreti, the association of financial adviser networks. The study compared the distribution networks of the five main markets in Europe, France Germany, UK, Spain and Italy.
The study found that each distribution channel was more or less favourable to open architecture. For insurance and banking groups, open architecture only accounted for about 10% of their activity; for private banks, it is 35%; and other distribution channels 53%.