ACCC decision has few implications for super platforms

While the competition regulator, the Australian Competition and Consumer Commission (ACCC), has blocked National Australia Bank’s (NAB’s) bid for AXA Asia Pacific on the basis of retail platform consolidation, analysts are suggesting the decision has few implications for superannuation sector.

Citi analysts Nigel Pittaway and Mark Tomlins claimed the ACCC decision to oppose the NAB bid had focused on wraps and there appeared to be few implications with respect to superannuation, insurance or banking.

The consensus among analysts is that the ball is now NAB’s court and that it has a number of choices, including seeking to address the concerns raised by the ACCC or challenging the regulator’s decision in the courts.

However, a court challenge would likely take months and would leave the future of AXA Asia Pacific in prolonged limbo.

The chairman of the ACCC Graeme Samuel told ABC radio today that the regulator’s decision was based on its concern about the removal of competition in the provision of retail investment platforms.

He specifically referenced NAB’s ownership of the Navigator platform and the competitive potential of AXA’s North product.

"We were concerned that, if NAB were to take over AXA, then that drive, that incentive for competition and innovation would be removed and that would have substantially lessened competition in that market,” Samuel said.