Frydenberg loses tennis friends on LIT inquiry

Or is it more Scotty from Marketing? Via the AFR:

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.

“Public consultation will allow the government to make an informed decision on whether to retain, remove or modify the stamping fee exemption in order to ensure that the interests of investors are protected and capital markets remain efficient and globally competitive,” Mr Frydenberg said in statement late on Monday afternoon.

Just get on with plugging the loophole, Recessionberg. We all know it’s dodgy as hell.

Neither the AFR nor MB is going let up on it.

David Llewellyn-Smith

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