Investment Theme

While the focus is squarely on the banks, there are other areas that may be impacted, some more aggressively so. This obviously includes mortgage brokers such as Mortgage Choice (ASX:MOC) and Yellow Brick Road (ASX:YBR) along with Home loans (ASX: HOM), the old resimac business and Finsure which is goldfields money (ASX:GMY), one of the largest aggregated brokers in the country,

With the abolition of trail commissions (and rightly so) in the longer term, this could impact businesses like iSelect (ASX: ISU).

The other area hit is potentially in car and consumer finance. There is a recommendation that businesses acting as an intermediary (like a car yard or seller of electronics /furniture for example) would have to undertake consumer credit checks and the like at the checkout. If this is applied strictly this could affect say a JB Hi Fi, Harvey Norman, Thorn Group, or even Buy Now Pay Later companies like Zip Co (ASX:Z1P) and AfterPay Touch (ASX:APT).

It may also affect listed car dealerships such as an AHG, APE or an ASG if they earn revenue from finance applications as intermediaries. Taking one step further, it could also affect new car sale volumes further which would extend into businesses such as GUD, ARB and the like.

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