After the Banking Royal Commission, Westpac wanted out of all of its specialist businesses (i.e. financial advice, insurance...and now its super arm, BT).
Background: After the Banking Royal Commission, Westpac wanted out of all of its specialist businesses (i.e. financial advice, insurance...and now its super arm, BT).
What happened: Westpac wants to flog its BT Super business to reduce its overall annual cost base by the end of 2024. But the timing of this sale is very...timely.
What else: BT's MySuper product actually failed the Government's Your Super, Your Future test this year...and if it fails again, it'll have to shut the door to new members.
💡The Government’s Your Super, Your Future test means underperforming super funds are forced to tell customers to change super funds if they fail the test once...
💡But if they fail the test two years in a row, they’re unable to take on new customers, which could make them a little unappealing to potential new purchasers.
💡Westpac's pool of purchasers is already limited due to the fact that other financial institutions sold out of their super arms first...so the sale could prove to be a little tricky.
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