The report, by Deloitte Luxembourg and ArtTactic, is based on survey results from around 350 respondents, including private banks, art professionals and collectors.
Although wealth advisers - those deciding where to invest on behalf of wealthy individuals - are increasingly looking at art as an asset class to invest in, 75% of those surveyed expressed concerns.
The report pointed to the fragmented nature of the art industry globally as a possible reason for transparency issues. It noted that without “one body that could speak on behalf of the industry as a whole… getting the art industry to adhere to a set of common guidelines and principles could be difficult to practically implement and enforce”.
Although wealth managers surveyed by the report believe more government intervention is needed, the majority of respondents believe self-regulation is the answer. It found 77% of art market professionals and 76% of collectors believe a self-regulated approach to establish trust and credibility are best addressed from within the art industry itself rather than through government intervention.
Other threats to the reputation of the art market listed in the report were cited as authenticity and price manipulation. The report also reviewed the state of the market and noted that after a decrease in the global art market throughout 2016, auction sales have recovered in the first six months of 2017, and the art market has picked up in several regions.
Deloitte’s fifth Art & Finance Report 2017 was published at the 10th Art and Finance conference in Milan earlier this month.