Patrimonia 2024: Financial Advisory Services Thriving in France

The FECIF Board meeting took place in the pouring rain at the far end of an exhibition hall in Lyon, France. In the hall behind us, around 8,000 participants—financial advisers, brokers, and others—had gathered for two days at the annual Patrimonia trade fair. Was this packed venue a positive sign for financial advice in Europe, or was it completely detached from broader global trends?

The French financial advice industry in top form
Patrimonia is a real hive of activity, where thousands of financial advisers gathered in Lyon for two intense days. Both a trade fair and a conference, it is the largest professional event of its kind in France. It is the place where everyone meets everyone—a valuable opportunity to gauge the health of the market.

Financial advice appears to be thriving in France (and elsewhere across the continent), which is no surprise: European households are saving more than ever, concerned about the long-term effects of an ageing population on their financial security. These households are not finding the advice they need on complex financial matters from banks—and they are not inclined to rely on the internet for such guidance.

The French wealth management advisory sector has undergone rapid consolidation over the past five to six years. Investment funds have driven a wave of mergers, the emergence of a dozen consolidation platforms, and the rise of firms managing up to €20 billion in assets. With more than 6,000 registered firms in France—and more start-ups than mergers each year—the market is rich with targets for further consolidation. Compared to the UK, where over 30 consolidation platforms operate and the largest manage more than €150 billion in assets, France still offers significant growth potential.

Private equity firms: both suppliers and stakeholders
Private equity firms were highly visible in Lyon, occupying over 50 exhibition stands—matching the presence of real estate investment companies and life insurance providers, which have long formed the backbone of household savings in France.

These private equity firms were more often in selling mode than buying mode. Wealthy households, advised by professionals, now represent a growing portion of the capital flowing into private equity. This sector has become a key, dynamic, and highly profitable component of financial advisers’ offerings. For high-net-worth clients, private equity now stands alongside structured products and traditional securities as a central pillar of investment strategy.

Another major contributor to the market’s recent momentum is the introduction of a new retirement savings vehicle: the PER (Plan d’Épargne Retraite). Launched by the 2019 PACTE law, the PER consolidated several existing schemes—both group and individual, insurance-based and bank-based—under a single, streamlined tax framework.

As is often the case, the PER was initially driven by transfers from legacy pension products (such as PERCO, Madelin, Article 39, Article 83, and others). But it quickly gained traction beyond transfers, surpassing €100 billion in assets faster than expected—less than half of which came from legacy conversions. Key drivers of this rapid success included the proactive role of financial advisers with their clients (notably the Premium group), as well as the recent high-profile LBO of ERES, a specialist in employee savings and pensions.

In summary, the combination of rising household demand, a transparent and tax-efficient product, and the dynamic role of financial advisers has created a PER success story—one that benefits all stakeholders and strengthens future retirees’ financial security.

Could this French success story inspire the rest of Europe?
As the new European Commission settles in and sets its priorities for the next five years, and as EIOPA expresses its intent to support pension reform across Europe, could we see meaningful progress? It would be a welcome ray of sunshine after all the rain…

Simon Colboc