ACCC concerned about NAB bid for AXA AP
The Australian Competition and Consumer Commission (ACCC) has indicated it has greater concerns about the National Australia Bank’s (NAB’s) acquisition of AXA Asia Pacific than it did about the bid by AMP Limited.
The ACCC’s preliminary assessment will give heart to AMP’s ambitions with respect to AXA Asia Pacific.
In a preliminary assessment issued yesterday, the ACCC said it believed the NAB acquisition would have a greater impact on competition in the platform market.
“The ACCC’s preliminary view is that the proposed acquisitions may raise competition concerns in the national market for the supply of retail investment platform services to institutions, suppliers of investment products, non-aligned dealer groups and financial adviser businesses,” it said.
“It appears to the ACCC that NAB’s proposed acquisition of AXA raises a higher level of concern than AMP’s proposed acquisition of AXA.”
The regulator said the proposed acquisitions would result in increased concentration in the national market for the supply of retail investment platforms, and added: “the ACCC notes that an acquisition of AXA by NAB will result in an increased level of concentration in respect to the wrap platform segment of the market”.
The competition regulator has called for further submissions on the NAB bid and is expected to hand down a final decision in mid-March.
AUTHOR
Mike Taylor
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
