Treasurer considers axing commission loophole for listed funds (AFR 28/01/20)

Treasurer Josh Frydenberg has set up a snap review to consider closing a loophole that allows financial advisers or stockbrokers to receive lucrative commissions for selling poorly performing listed investment funds to mum and dad investors.

In a move set to send shockwaves through the financial services industry, Mr Frydenberg has directed Treasury to hold a four-week consultation on the merits of the commissions, known as “stamping fees”, paid by fund managers, for selling their newly floated listed investment entities.

Several high-profile fund managers and financial advisers have called for the government to fix the loophole, including Magellan Financial Group’s Hamish Douglass, PM Capital’s Paul Moore, Will Hamilton and Koda Capital’s Paul Heath.

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AFR 280120