The independent consultant (HIPE) becomes larger: ask to be manager or brokerage

Something is changing in the Spanish stock market . In recent months , we are taking several steps that will be an open business opportunities for small operators and independent consultants . The main novelty , the sources consulted by this means , being the supervisor is accelerating the procedures for independent advisors, whose works basically limited to counseling, can become brokerage and management companies.

“Three years ago , when trying to take a step of this kind, was virtually impossible. But in recent months , there has been a 180 degrees and the CNMV Commission National Securities Market , is facilitating it all “, say from a HIPE – Company Financial Advice Independent , which is considering making the leap .

His opinion is shared by several firms , which are also studying to become brokerage or management , as has been told The Confidential . The first to break the shell is expected to be the biggest and actually talk about possible candidates as Koala Capital , Abacus Capital, Capital Guidance , Sigrun Partners, Buy & Hold or Angle Advisors Green Sicav .

And, one of the problems found when these professionals to perform their work is that, as the law only allows them to advise, recommend need to be arranged through instruments such as SICAV , as they, personally, what are prohibited .

But here’s the second point that is changing and playing in favor of going to see each independent firms see : legislation . Currently being discussed within the framework of MiFID II , eliminating the so-called commissions retrocession , which are charged to recommend some products over others , an income which, in Brussels , should disappear because they put in check independence.

The problem, as Thomas Gomez , managing partner of the consulting Gomarq explains, is that if you eliminate this revenue stream , as in Spain there is no culture of paying for advice , many firms will have to make the leap to brokerage disappear , or link to a financial institution , as according to the current draft , Europe will allow the collection of these fees only under very specific circumstances , as will be linked to a financial institution (which plays against character independent ) . In addition, please inform with full transparency and clarity to the client of these commissions .

Change of scenery

In Gomarq , a firm specializing in advising companies and investment services managers also noticed ” in the last year an increase in companies or promoters that are viable investment business at the moment and are seeking license to operate in the market ” . The profile of these new actors are summarized in three main groups: HIPEs who decide to major , professional firms or closely linked to the financial sector who want to become investment firm and some industry executives who decide to go on their own.

” There is more demand because you are seeing the end of the crisis, and that makes expectations created in the field of investment, and because the natural step to finish EAFI is becoming as manager or brokerage , after giving this intermediate step that gives you experience, allows you to equip you with the necessary means , meet the CNMV and the supervisor knows you … “said Gomez, who spent 13 years working in the Commission.

And, all this change is also playing an important role culture change within the CNMV Commission National Securities Market , which seems to have overcome the so-called Gescartera syndrome, a scandal that paralyzed the supervisor for a long time , because of fear that was inside the home than any other snack bar again doubt the solvency of the institution.

But, with this attitude, which prevailed even just three years ago , the agency directed by Elvira Rodríguez shown an increasing willingness to give input to independent agents and multiply therefore competition in the market. In fact , there is already a hundred a hundred EAFI registered with the CNMV in less than five years term.

Additionally, the CNMV last a circular control that require greater internal controls to all investment firms, also the HIPE , which will make the smaller can not bear the costs and , in many cases, forced to disappear.

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