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Vivienne Kelly
The ACCC will push ahead with a review of CBA’s bid to increase its stake in Aussie, according to a new report.
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Yesterday, The Sydney Morning Herald published an article that stated the ACCC was looking into whether Aussie will be able to remain competitive under the control of CBA.
“As part of the review, the Australian Competition and Consumer Commission will also examine Aussie and CBA’s role in mortgage distribution services, including how they provide mortgage brokers with access to a panel of lenders, and issues around technology and administrative support,” the article said.
The story highlighted CBA’s Finconnect business, which distributes mortgages through accountants and lawyers, as a potential stumbling block to the deal.
The ACCC said it will consider whether Aussie is a “unique or a vigorous” competitor in the mortgage market and whether this will change if CBA succeeds in securing majority ownership, according to Eric Johnston, who wrote the piece.
The review will also question whether the move “will increase prices or profit margins or decrease the quality of products” on offer.
The ACCC will take market submissions until the end of this month.
When the CBA acquisition was announced in December, Aussie’s executive chairman John Symond said the move would be positive for brokers and borrowers alike.
“It will mean more services and more products,” he said.
CBA’s executive general manager, third party and mobile banking, Kathy Cummings, said CBA was not planning any sweeping changes to the brokerage.
“We expect to increase our stake in the business to 100 per cent over the next three to four years,” she said. “For Aussie it will be business as usual – Aussie will continue to run as a separate entity.”
