The program improves on the existing process followed by the lending industry
Gilbert + Tobin (G+T) has helped five major Australian banks secure authorisation from the ACCC for a program geared towards acquiring assurance services for mortgage aggregators.
Under the program, the banks along with other industry participants can jointly procure assurance reviews of mortgage aggregators. According to G+T lead partner Elizabeth Avery, the program “will create a more effective and efficient way for the lending industry to conduct aggregator assurance reviews”.
The existing process involves lenders conducting assurance reviews independently to assess the compliance systems of mortgage aggregators they work with; as a result, each aggregator goes through multiple reviews annually. The banks showed the ACCC that the new joint programme would enhance efficiencies and generate cost savings by enabling lenders to collaboratively arrange and finance aggregator assurance reviews.
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Thus, mortgage aggregators will face fewer assurance reviews, limiting the duplication of resources and required information. The program also facilitates improvement in the quality of assurance reviews and make them accessible to smaller lenders.
The program received conditional authorisation from the ACCC on 11 April.
The G+T team assisted in compiling and presenting detailed proof of the program’s effectiveness, tackled feedback from the ACCC as well as interested parties during the draft determination. Avery received support from special counsel Haidee Leung, and lawyers Sophie Player and Neeharika Maddula.