Liberty's recent aggressive marketing strategy to differentiate its brand from the major banks may put pressure on Peter Hawkins to choose between one company and the other.
In a media release issued after Liberty cut its home loan rates in June, Liberty senior executive Brendan O'Donnell highlighted the fact the lender's price offers were beating all of the major banks' offers.
"Liberty is committed to offering customers one of the broadest and best value home loan ranges available in the Australian market, including prime and custom loans," O'Donnell said.
"As an independent lender, we strive constantly to be a competitive alternative to the banks, and as such we have consistently offered lower rates on our standard variable loans for years."
On
its website, Liberty makes no secret of the fact that its role as a financial services provider is widening. Liberty profiles itself on its web pages in the following way:
"From our origins in the specialist mortgage market we have steadily expanded our products and services. Today, Liberty can help you buy a home, the car of your dreams or an investment property; we can assist your business with commercial property loans, cash flow finance; and, if you own or manage an auto dealership, finance for your vehicle floor stock."
The decision by Liberty's board to enter the retail funds management market adds further to Hawkins' conflict. He is a director of the fund manager and responsible entity for the Liberty Term Investment Fund that issued a Product Disclosure Statement in February 2011. Westpac has its own funds management business that competes for retail investors.
(For a description of issues with Peter Hawkins' directorships of Westpac and Liberty Financial,
see this story: Westpac says Hawkins' Liberty conflict adequately disclosed.)