On 11 April 2024, the Australian Competition and Consumer Commission (ACCC) granted authorisation with conditions for the Commonwealth Bank, Westpac, ANZ, NAB and Macquarie Bank (the Applicants) and other industry participants to develop and implement a program to collectively acquire assurance services in relation to mortgage aggregators.
Mortgage aggregators serve as intermediaries between mortgage brokers and lenders, and assist brokers in providing their services to consumers. As part of managing the risk and compliance obligations of their mortgage broker networks, lenders currently individually arrange for assurance reviews of the compliance systems of each aggregator they deal with. The authorised conduct allows lenders to jointly arrange, and to share the cost of, aggregator assurance reviews.
The ACCC considers that lenders collectively acquiring assurance services in relation to mortgage aggregators is likely to result in efficiencies and cost savings for both mortgage lenders and aggregators. Participating aggregators will be subject to fewer assurance reviews, therefore reducing the duplication of resources and information currently required of both aggregators and lenders for aggregators to separately demonstrate to each lender that the aggregator meets that lender’s assurance standards.
The ACCC also considers that lenders jointly acquiring assurance reviews will improve the standard of assurance reviews, because the standard of assurance reviews undertaken collectively is likely to be higher than most lenders would undertake if they continued to separately conduct assurance reviews.
The ACCC has granted authorisation for 5 years, until 3 May 2029.
Further information about the ACCC’s final determination is available on the ACCC’s public register.