Following its ‘Phase 2’ investigation, the CMA has found that FNZ’s purchase of GBST could result in a substantial lessening of competition. This could lead to UK consumers who rely on investment platforms to administer their pensions and other investments facing higher costs and lower quality services.
Although there are differences in the business model that the two companies use, with FNZ providing an integrated software and servicing solution and GBST being a software-only provider, the CMA considers that they compete closely in a concentrated market in which there are few other significant suppliers.
In reaching this provisional decision, the CMA analysed a range of evidence looking at how closely these companies compete, including tender data and the companies’ internal documents. It also engaged with customers, competitors, and other stakeholders to inform its findings. The CMA has set out potential options for addressing its provisional concerns, which include requiring FNZ to sell all or part of GBST.
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