"We find, somewhat surprisingly, that vertical integration is more likely to be pro-competitive if the industry is more concentrated," Simon Loertscher senior lecturer at University of Melbourne said in a recent working paper.
"This effect could even be achieved in some cases where integration bordered on a monopoly," InvestorDaily quoted Loertscher as saying."In the extreme, even monopolizing the downstream market can enhance consumer welfare because the integrated firm expands its quantity by a very large extent after integrating," he said.
According to study, regulators should actually be particularly more wary of vertical mergers when there are more firms in a particular industry, rather than fewer.
However, Loertscher’s research was not based on the wealth management industry and hence may or may nor to apply to the industry.