ING: Had no option other than to sell, following significant brand / reputation damage. The market conditions and dominant shareholder meant that there was only ever one purchaser on the other end of this transaction. Whilst NZ is a very minor element of their global distribution, there is no doubt that they have left the door open to return to Australia in better times.

ANZ: Were the only purchaser. ANZ will no doubt quickly absorb ING processes into their existing models as quickly as possible – despite assurances that its “business as normal”. Whilst ANZ will be dominant in the wealth management space through this purchase, banks have historically demonstrated an ability to erode value when matching shareholder and stakeholder expectations. The current ING model will have to change – otherwise, why bother purchasing it?

The Adviser: You will continue to receive the same level of service / product offerings from both ANZ & ING for the next 12 months, although will start to notice incremental differences in process, philosophies and people. It is highly likely that the current ING offerings will be changed to increase returns to ANZ shareholders.

The Regulator: I guess that this makes the Regulator’s job a bit easier, as it now has one large cheque book to pursue in the event of problems. The flip-side is that this cheque book will also be used for defense, making the Regulator’s task more complex and expensive.

The Consumer: Although the theory suggests that the consumer will make rationale decisions, the reality is that apathy and ignorance will preserve a good chunk of the ING assets purchased by ANZ. The bank’s aim should be to redirect as much of these assets as possible into lowering their overall cost of money – as offshore money becomes increasingly expensive.

Bottom line: be aware of the medium – longer term impacts of this transaction upon your clients, and ensure that you are not exposed as thing unfold. Be prepared to speculate (and avoid the self-serving propaganda) – it’s healthy!