ACCC sees AMP as IOOF’s major competitor
The Australian Competition and Consumer Commission (ACCC) has declared it will not be opposing IOOF’s acquisition of MLC Wealth.
The ACCC said it was not opposing the acquisition because IOOF and MLC because feedback from customers, financial advisers and other industry participants “suggested that this deal would not be likely to substantially lessen competition”.
It said that the ACCC’s review indicated that, post-acquisition, IOOF would be competing with and constrained by several other large firms along with a number of smaller firms for the supply of retail platforms.
“For the supply of corporate platforms for superannuation and other retirement income, the review indicated that IOOF would still face significant competition from large industry super funds,” the ACCC said.
“For the supply of financial advice, information provided to the ACCC indicated that IOOF would still only have a market share of approximately 10% post-acquisition, that the market would remain highly fragmented and the merged entity would face competition from AMP, a similar-sized competitor, as well as other smaller firms.”
Recommended for you
Insignia Financial has announced the status of the two private equity bidders as due diligence comes to an end, with one bidder opting to pull out.
The corporate regulator has cancelled the AFSL of a Queensland-based financial services provider, having held the licence since mid-2016.
The financial advice industry has reacted to the appointment of Dr Daniel Mulino as the new Minister for Financial Services, with hopes for improvements in legislation and education standards.
With less than one-third of Australian business owners seeing an adviser, Business Health has detailed how advice practices can successfully target this underserved client segment.
