ASB Securities to Maintain Competitive Pricing

8 September 2004

ASB Securities to Maintain Competitive Pricing

ASB Securities, the wholly-owned sharebroking subsidiary of ASB Bank, has given investors an undertaking that it will not raise its Internet brokerage rates as a result of the Access Brokerage collapse.

A number of investors have expressed concern that the rapid demise of Access may lead to higher Internet broking fees.

Tim Preston, Managing Director ASB Securities, says this will not be the case and as long as no additional fees or costs outside its control are imposed, ASB Securities has no plans to increase its current Internet rates.

“We have a very sustainable and competitive business model and are committed to giving investors easy and cost effective access to our capital markets,” Mr Preston said. “We certainly won’t be using the situation regarding Access Brokerage as an opportunity to increase our fees.

“As a result of the failure of Access Brokerage there are a lot of investors currently looking for a new broking firm. While there is some price sensitivity, not-surprisingly the brand and reputation of brokerage firms has become an equally important factor for investors in choosing where to go to now.”

ASB Securities was started five years ago and now accounts for around 9% of all NZX trades by volume. ASB Securities is backed by the strong reputation of the ASB Bank and continues the Bank’s leadership in providing online financial services. In addition to Internet based services ASB Securities also offers full advisory, discount telephone, intermediary, and fixed interest services, as well as margin lending.

ENDS

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