Powered by MOMENTUM MEDIA
subscribe to our newsletter
John Symond defends Aussie on bank ownership

John Symond defends Aussie on bank ownership

Aussie Home Loans executive chairman John Symond has backed his decision to sell the majority of Aussie Home Loans to CBA in light of the recent spotlight on vertical integration.

The final report of the Financial System Inquiry, which was released earlier this month, recommended increased disclosure of bank-owned brokerages.

Speaking to Mortgage Business about the recommendations, Aussie executive chairman John Symond said he is “all for disclosure” and has “no embarrassment” telling people that Commonwealth Bank is Aussie’s majority shareholder.

Advertisement
Advertisement

“If I wasn’t positive about CBA I wouldn’t have done the deal,” Mr Symond said.

“I always put my money where my mouth is,” he said. “I’ve got a big bag of CBA shares, so I believe in them.”

One of the deciding factors for Mr Symond, who received an estimated $185 million following CBA’s 2013 acquisition, was that he knew CBA is very aware of customer care and customer satisfaction.

“I look on the CBA ownership very positively,” he said.

CBA’s ownership of Aussie has been highlighted throughout the Financial System Inquiry as an example of vertical integration in mortgage broking.

However, the inquiry’s final report failed to find any evidence that vertical integration creates conflicts of interest.

Mr Murray said his recommendations around disclosure for product manufacturers and distributors should clear up any issues with bank ownership.

John Symond defends Aussie on bank ownership
mortgagebusiness

 

Latest News

An aggressive monetary policy strategy employed in response to rate cuts in foreign markets would be a “dangerous path to go down”, Rese...

APRA data revealing that the customer-owned banking sector is outpacing the major banks in the home lending space has been welcomed by a non...

A multinational non-bank lender has commenced operation in Australia in a bid to disrupt the domestic market as it seeks to service unmet de...

FROM THE WEB
podcast

LATEST PODCAST: Broker share and Westpac U-turn

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.