NAB, Westpac to dominate financial planning

Concerns that National Australia Bank will dominate the financial planning and wealth management industries if it is successful in its bid for Axa Australia Pacific will be investigated by the competition regulator.

NAB and its’ wealth management arm MLC already have 1389 planners nationally, an 8 per cent market share. If it buys Axa APH, that could rise to 15 per cent.

If NAB also buys Queensland dealer group PIS it will control 23 per cent of all financial planners.

AMP, which has also made a bid for Axa, has nine per cent of financial planners.

Financial research firm Rainmaker found that five largest operators control 69 per cent of the financial planning market.

Rainmaker head of research Alex Dunnin said “Even though NAB's purchase of Aviva will increase this top five concentration from 69 to 73 per cent, market leader will still be BT/Westpac, albeit by 1 per cent rather than 5 per cent.

Source: The Australian