ANZ Group has announced that it has entered into an agreement that will allow the transfer of clients from the ANZ investment platform to CMC markets. The agreement deal will involve the transfer of more than 500,000 ANZ Share Investing clients with total assets of AUD 45 billion.
CMC Markets is an online financial service provider that offers online trading and institutional B2B platform solutions. ANZ Group will transfer the clients for a total sum of AUD 25 million. The amount will be obtained from CMC Market’s existing cash reserves.
Strategic Partnership for CMC Markets
This transition is in line with the objectives of CMC Markets. It will help the group to meet its objectives to achieve diversification in its business operations in Australia and globally. The move will also be strategic for the group, as it comes at a critical time when the demand for retail stockbroking is high.
The deal also stated that the white label technology relationship between the two firms would be halted. This white label partnership generated net trading revenues of £39.5 million for CMC Markets in the 2021 financial year.
The CEO of CMC Markets, Lord Cruddas, spoke on the matter, stating that, “This transaction is part of our strategy to create a non-leveraged investment platform and forms part of our longer-term goals for the company. As this new venture expands and develops, we will be able to offer more products, including third-party funds and tax wrappers, directly to our clients. This is a further step towards the diversification of CMC’s earnings and complements the launch of our new investment platform in the UK, aligning our business strategy across our core geographies.”
Take 18 Months
CMC Markets also spoke about the transaction period, stating that it will range between 12 to 18 months. Cruddas also issued remarks about welcoming the new clients who will now be share investing clients at CMC Markets. He also added that CMC Markets had worked with ANZ Bank to facilitate client operations for the past three years.
At the beginning of September, CMC Markets issued a trading update reducing the predictions for the operating income in the 2022 financial year from over £330 million to between £250 million and £280 million. The prediction was done by accessing the first five months of the 2022 fiscal year.