Vertically Integrated Model to Face Competition Review

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Vertically integrated financial services businesses will come under review after the Federal Government requested the Productivity Commission examine competition in the nation’s financial system.

Federal Treasurer, Scott Morrison
Federal Treasurer, Scott Morrison

Announcing the review, Treasurer, Scott Morrison said the Commission would look at improved consumer outcomes as well as the productivity and international competitiveness of the financial system.

“In doing so it will consider the level of contestability and concentration in key segments of the financial system, including the degree of vertical and horizontal integration,” Morrison said.

He added the review was part of a series of commitments to review the state of competition in the financial system which the Federal Government had made in response to the Financial System Inquiry.

He also called on all interested parties to make a submission to the Commission, which has yet to release terms of reference, but will commence its review on 1 July 2017 and report by 1 July 2018.



2 COMMENTS

  1. Based on the LIF debacle, the terms of reference are the defining thing to look at before anyone would bother spending time and resources making submissions, as a flawed terms of reference, leads to a flawed outcome in every instance.

    • TOR is always the key. Maybe now this move will accelerate the banks selling off their life insurance businesses. LIF will be their legacy to the risk industry.- a total fiasco. Maybe now, faced with the inevitable and entirely predictable downturns in advised new business production, the small insurers will find the courage to lobby Government to rescind LIF

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