The M&A market has been very active in the UK but this is not the same for the European financial advice sector.
International Adviser surveyed 47 Europe-based financial advisers during its Future Advisory Forum Europe event and found 40% do not have any M&A ambitions.
But 32% did say that they are looking to acquire, while only 9% are looking to be acquired.
Some 19% said that they were not sure.
This differs from the UK market as firms like Sanlam, AFH, and Kingswood have been keen to buy smaller IFAs in the sector.
Resources
Compliance has put a real strain on the market with an increasing number of regulations.
IA also polled 45 financial advisers on what firms would prioritise if compliance stopped taking up so much time.
The majority (58%) said that they would look into client acquisition more.
The lack of M&A activity in Europe was highlighted as no one said they would prioritise deals in the space.
Improve back office functions (18%), product development (13%) and enjoying the breathing space (11%) made up the rest of the answers.
Growth ambitions
Additionally, the poll found that 33% of 48 European financial advisers would want to expand into the UK if their firm was looking to bolster its global operation.
This could be a direct reaction to Brexit, which is expected to go through on 31 October 2019, according to UK prime minister Boris Johnson.
Some 19% said they are keen on the Middle East and 15% have their eyes set on Asia.
Latin America and Africa both received interest from 13% of respondents, while regulation-heavy North America received only 8% of the vote.
US expats
Another interesting area for European financial advisers is US expats.
Since the introduction of the Foreign Account Tax Compliance Act (Fatca), many firms have decided not take on American citizens as clients.
In the survey of 52, there were 42% that said their firm caters for them, while 38% said no.
Others said: Would like to but too difficult (8%), plan to offer services to this group in future (8%) and we used to but not any longer (4%).
Service offering
Lastly, IA asked 39 advisers what services most of their clients want.
The majority (41%) said a mix of estate, retirement, tax and investment planning.
Some 26% said help with investments was most desired, while 23% said retirement planning.
Only 8% said tax planning and 3% said estate planning.
