Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Vertical integration placed under PC microscope

vertical-integration/policy/finance/Royal-Commission/

8 May 2017
| By Mike |
image
image image
expand image

The Government has moved to place vertical integration in the financial services industry via a new inquiry reference to the Productivity Commission (PC).

The move was announced today, little more than 24 hours before the Federal Budget, with the Treasurer, Scott Morrison, saying he had tasked the PC to hold an inquiry into competition in Australia’s financial system consistent with the Government’s response to the Financial System Inquiry (FSI).

The Government announcement has been welcomed by the Australian Bankers Association (ABA) which said it was pleasing the inquiry would look at all parts of the financial services industry.

Morrison said the PC would look at how to improve consumer outcomes, the productivity and international competitiveness of the financial system and economy more broadly, and support financial system innovation, while balancing financial stability objectives.

The Treasurer said that, in doing so, the PC would consider the level of contestability and concentration in key segments of the financial system, including the degree of vertical and horizontal integration.

It will also examine competition in the provision of personal deposit accounts and mortgages and services and finance to small and medium businesses.

The Inquiry will commence on 1 July 2017 and is due to report to the Government by 1 July 2018.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

4 weeks ago

So we are now underwriting criminal scams?...

7 months ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 2 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 6 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND