Manlio Marucci, reflections on the new book: financial advisers stronger after the market storm

It is not the first time that stock markets have entered a phase of extreme volatility, but today’s advisers are able to face this difficult and at times unfamiliar period with experience.

Article and interview by Massimo Bonaventura

After “Financial advisers as zealous butlers of intermediaries” (Edizioni Lightsky), Manlio Marucci* has recently published his latest book, titled “Financial Advice as a Profession - Structural Dynamics and Development Processes” (also with Lightsky). It is a book that, starting from a critical reconstruction of the more than fifty-year history of financial advice, shows how this profession still struggles to establish itself as “necessary” for the community, on a par with other professional categories such as lawyers and chartered accountants (and not only them).

The issues addressed by Marucci prompt deep reflection among those who, every day, deal professionally with investments and the issues of personal finance; especially in a moment as difficult as the present one, which is seeing the return of “wild volatility” to the financial markets and bearish moves by speculative funds. Building on this collective reflection, we asked Prof. Marucci for a long interview, moving quite a bit beyond the framework of the classic book review and tackling some topics that are often overlooked by financial advisers because of professional commitments and the administrative workload (unpaid) imposed by the European financial system for almost a decade now and today heavily burdened by the bureaucracy of MiFID.

Prof. Marucci, how has the financial wealth of Italian families changed since the introduction of the Single Currency?
If we frame the issue with reference to the economic development that took place after the 1990s, there has been a major process of integration among the countries of the European Union, aimed especially at coordinating economic and financial policies and common monetary policy. The euro, in fact, has brought numerous benefits for businesses, the economy and consumers. Since it began circulating (1 January 2002), the wealth of Italian families has increased significantly, and today the amount of private assets stands at around €10 trillion. A significant wealth, which helps us understand the current situation.

What percentage of Italians’ savings is currently managed by financial advice networks?
According to the latest data provided by the associations Assoreti and Assogestioni, the proportion of savings managed by financial advice networks has reached the €900 billion mark, with growth rates of 10-14% over the last two years. This shows that financial advisers have taken on a central role in steering the investments of Italian families in the best possible way.
Is it possible to estimate the percentage of assets managed by independent advisers?
It is not possible to provide a precise figure, since the OCF, which holds the quarterly data sent by supervised entities (autonomous advisers and SCFs), has not yet published the overall number. It is estimated that the value of financial assets managed by independent advisers is in the order of €25-30 billion.

Has there been a historical period, or several historical periods, when savers began to regard former promoters as true professionals rather than mere sellers of investment funds?
The way savers perceive financial advisers has certainly changed since the title was altered from promoter to adviser, as decided by Consob in March 2016; while the employment relationship, already governed by the 1991 founding law (the SIM Law), remained unchanged, whether as employee, principal’s representative or agent. It should be said that after this change of noun, consumers’ perception changed radically, giving meaning and value to the profession of financial adviser. This perception of a “new professionalism” has also changed among regulated historical professions such as chartered accountants, notaries, lawyers, etc.; so today it is less difficult for a financial adviser to build business synergies with those professional groups.

In your view, is there awareness within the financial adviser category of being true professionals, or is more work still needed in this direction?
I am convinced that the data extrapolated from the number of registered members in the roll kept by the OCF (the supervisory body for financial advisers, editor’s note) proves it, as do the efforts made both on the investment side by intermediaries and in making this profession more selective and attractive. Recent television spots broadcast on national media also show this. On the training side, however, I am convinced that much more still needs to be done, given the complexity of products and new financial instruments, such as cryptocurrencies and complex insurance products.

In your latest book, “Financial Advice as a Profession”, you discuss the international context of financial advice. What are our strengths compared with foreign colleagues, and where can we improve?
I don’t think one can draw a sharp distinction between which advice is better and which is less appropriate; it depends on the context in which one operates and on how professional roles are regulated from a legal standpoint. Undoubtedly, in Italy regulation is much stricter and more complex than in other countries, and the profession is subject to compliance with rigid procedures imposed by supervisory bodies. This provides greater security and transparency for investors and strengthens the banking and/or financial system.

What do you say about financial educators? Is this a professional category that can emerge independently, or will it remain an additional title attached to current advisers?
There has been a great deal of work in recent years to recognise the importance of the financial educator role, especially after the institutionalisation of financial education in primary and secondary schools, brought in by the Capitali law (No. 21 of 2024). The underlying problem is this: who trains the trainers who will then teach the subjects linked to the field of the financial educator? The financial adviser should be the central figure in this cultural revolution.

As for the risks posed to the financial educator, the paralysis of judgment, stemming from the “revolution” of Artificial Intelligence, you speak in your book of “paralysis of judgment”. What exactly do you mean by this term?
I dedicated an entire chapter of my latest book to this topic, offering an open and critical view of the issue, given the speed with which Artificial Intelligence has entered people’s everyday lives, affecting primary relationships and the world of work. Such a disruptive revolution creates conditions of social burnout, which many psychologists are focusing their research on.

Among the various financial advice models you have analysed, which will become most established in the future?
Undoubtedly, over the medium term, the area of independent advice will prevail, since the organisations responsible for out-of-office distribution are also rapidly gearing up to offer clients fee-only advice. Once the networks’ offering has absorbed this type of service, it is likely that many advisers who are not independent today will consider moving into the independent section (especially if they choose to set up a sole professional practice), since this will make it possible to increase the profit margins currently shared to a large extent with the network to which they belong. But true competition with today’s bank-networks, which could slowly be overtaken, will emerge only when the SCFs (autonomous financial advice firms, editor’s note) also begin to award bonuses to new colleagues.

Is it conceivable that in Italy we could move closer to the Anglo-Saxon model of financial advice?
I don’t think so. The English model is so different that it is scarcely suited to our reality. In Italy, as in the whole of the European Union, the principle of client protection in all respects prevails and is becoming stronger; as a result, regulation is very strict compared with other countries, including the solvency guarantees that must be assured to investors. By contrast, as I pointed out in my latest book, in the United Kingdom - which has a population similar to Italy’s - financial advice employs around 130,000 people in total, whereas in Italy there are only 41,000. This difference in numbers can be explained by the fact that Anglo-Saxon countries have made the history of financial advice, and in the United Kingdom there is a much more advanced savings culture and a much higher level of competence among investors than in our country.

What prospects are there for the much-hoped-for national collective contract for financial advisers?
I hope that the sensitivity of the intermediaries’ associations and the need to protect the specific categories of financial advisers will make it possible to tackle the issue soon. I am convinced that a collective economic agreement will eliminate many of the disputes currently present in the employment relationship between intermediary and adviser, ensuring benefits for both sides, and will encourage young people to enter this wonderful profession.

The trade war unleashed by Trump and the violent volatility of the stock markets are putting financial advisers to the test, forcing them to work overtime to reassure savers. How do you think they will cope?
Exceptionally well, as always. It is not the first time that the stock markets have entered a phase of extreme volatility and low risk appetite, and the rather high average age of today’s financial advisers allows them to face this difficult and at times unfamiliar period with the right professional experience. I would like to offer one piece of advice above all: have the older and more experienced advisers work alongside the younger ones, in order to limit mistakes and show them how to discourage clients from making irrational decisions. Once this difficult phase unleashed by the American president is over, financial advisers will be stronger than before and will be seen as essential professionals for the families of investors who have followed the advice to keep a cool head.

* President of Federpromm, lecturer, sociologist and writer