Gilbert + Tobin has assisted major Australian banks in achieving ACCC authorisation for a program to collectively acquire assurance services for mortgage aggregators.

The ACCC granted authorisation with conditions on 11 April 2024 for five major Australian banks and other industry participants to jointly procure assurance reviews of mortgage aggregators under this program.

Currently, lenders independently organise assurance reviews for the compliance systems of each aggregator they engage with, resulting in aggregators undergoing multiple assurance reviews each year. The banks were able to demonstrate to the ACCC that the new program will likely result in efficiencies and cost savings by allowing lenders to jointly arrange, and to share the cost of, aggregator assurance reviews. Participating aggregators will also be subject to fewer assurance reviews, thereby reducing duplication of resources and information currently required. The program will also ensure that assurance reviews are conducted to a higher standard and will also be available to smaller lenders.

The G+T team was led by Competition, Consumer + Market Regulation partner Elizabeth Avery, supported by special counsel Haidee Leung and lawyers Sophie Player and Neeharika Maddula. 

Speaking on the successful result, Elizabeth commented: 

“We are delighted to have assisted the banks in securing ACCC authorisation for a program that will create a more effective and efficient way for the lending industry to conduct aggregator assurance reviews. The G+T team was instrumental in gathering and presenting detailed evidence to demonstrate the benefits of the program, addressing feedback from the ACCC and interested parties in the draft determination.”