CBA sitting pretty as ACCC announces no opposition to Aussie take over

by Mackenzie McCarty22 Mar 2013
Minz says the decision perpetuates the confusion caused by the big banks’ multi-branding strategy –which he describes as setting up or acquiring smaller brands that then give the impression of being independent.

“This strategy is creating a false impression among customers that there is a high level of competition in the marketplace, but in reality a number of these so-called competitors are actually part of the big banks themselves.”

However, the ACCC concluded that this would not give rise to a ‘substantial’ lessening of competition, arguing that Aussie brokers make up just 6% of Australia’s mortgage brokers and that ‘there are many other distribution channels through which lenders can access brokers and borrowers’.

In reaching its decision, the ACCC says it consulted with a range of interested parties, including bank and non-bank lenders, mortgage aggregators, broker head groups and industry bodies.

Aussie declined to comment on the decision, saying simply that it’s ‘business as usual’ at the aggregator. A representative of CBA says the major bank is ‘pleased’ with the outcome, but refused to comment on any potential conflict of interests, saying the bank ‘[doesn’t] want to get in a debate over this’.

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  • by Wilko 22/03/2013 10:10:35 AM

    Minz is just scared that competition will get even more intense.

    I think Aussie will have some very competitive product in the future and this probably scares the crap out of him.

    Good decision by the ACCC and shows the worth of the MB industry to the rest of the financial services industry.

  • by Country Broker 22/03/2013 11:22:27 AM

    This decision shows the ACCC have no real power or they will not use it in the national intertest or the best interest of the public in mind .
    The comments about there is no doubt tghe CBA will have an influence is so telling and yet nothing but an approval, just amazing !

  • by Tony O 22/03/2013 12:13:54 PM

    They say only 6% of Brokers in the market however, didn't say what percentage of the market Aussie has or business they write is !!!!
    Also, what sort of preferential treatment will they get in processing compared to the other 94% of brokers !!!
    Thought John was going to "stick it to the big Banks" !!! Think maybe he has "stuck it" to everyone else, but CBA !!! Including those that go to him to encourage the competition.
    ACCC need to have a good look at themselves and their decision.