ASX exit from Sympli raises concerns over e-settlement monopoly

The Australian Securities Exchange’s (ASX) decision to divest its 49 per cent stake in Sympli, a key player in the digital property settlement sector, has sparked significant concerns among industry experts. Lawlab, a prominent digital conveyancing firm, has voiced apprehensions that this move could pave the way for a monopoly in Australia’s e-settlement market, potentially affecting competition and consumer choice.

Ian Perkins, Managing Director of Lawlab, expressed alarm over the ASX’s decision, suggesting that it represents a significant shift in the competitive landscape of the property settlement industry. “When the ASX decides its stake in the only alternative platform is worth next to nothing, it sends a clear message – the market has given up on competition,” Mr Perkins stated. His concerns are focused on the implications of Sympli’s potential collapse or further weakening, which could leave Property Exchange Australia (PEXA) as the sole operator controlling a substantial $1 trillion settlement pipeline. “That is an unfettered monopoly and consumers will pay the ultimate price,” he added.

The ramifications of such a monopoly, according to Mr Perkins, extend beyond the industry and could directly impact everyday property buyers and sellers. “A monopoly means higher settlement costs, slower innovation, and greater risk,” he explained. The potential fallout from a single point of failure in the system is significant. “If PEXA goes down, settlements stop. Families can’t move in, removalists wait on the street, bridging finance blows out, and consumers have no alternative platform to turn to because there is no choice, no backup, and no recourse,” he warned.

Sympli has developed a fully functional platform capable of handling refinances and property transfers. However, its growth has been stifled by a lack of support from major banks, which have so far refused to accept Sympli workspaces, effectively reinforcing PEXA’s dominance in the market. This situation has prompted calls for urgent industry action, especially in light of the ASX’s withdrawal.

“The ASX exit makes industry action urgent,” Mr Perkins emphasised. He urged banks, conveyancers, and lenders to rally behind Sympli to prevent a monopolistic scenario. “If the regulator won’t intervene and the ASX won’t stay invested, then the industry must step up,” he said. Lawlab has proposed a coordinated industry effort to ensure that at least 10 per cent of all property settlements are processed through Sympli within the next year. This, they believe, is crucial to maintaining a viable competitive landscape. “If we don’t act now, competition will disappear entirely,” Mr Perkins cautioned.

The lack of competition in the e-settlement market could have far-reaching consequences for the property sector. Supporting Sympli, according to Mr Perkins, is not just about preserving competition but also about safeguarding consumer choice and the integrity of Australia’s property settlement system. “Supporting Sympli is essential to protect competition, consumer choice, and the integrity of Australia’s property settlement system,” he reiterated.

The ASX’s decision to exit Sympli comes at a critical juncture for the digital settlement industry, where the balance between innovation, competition, and consumer protection hangs in the balance. As the industry grapples with the potential implications of a single-operator future, stakeholders are being urged to consider the broader impact on the property market and the necessity of fostering a competitive environment.

In the wake of the ASX’s divestment, the call for a collective industry response grows louder. The future of Australia’s e-settlement market may well depend on the willingness of its participants to embrace competition and ensure that alternatives like Sympli have the support they need to thrive. As the situation unfolds, the focus remains on how the industry will respond to this challenge and what steps will be taken to preserve a competitive, resilient property settlement landscape.