The Liberal Government today voted against Labor amendments that would have seen an end to commissions being paid to financial advisers for selling dodgy listed investment products to mum and dad investors.  
 
Labor’s amendments would have closed a legal loophole that allowed otherwise-banned forms of conflicted remuneration to be paid to financial advisers who sold interests in listed investment companies and listed investment trusts. 
 
This loophole was inserted by the Coalition as part of their rollback of Labor’s financial advice reforms in 2014. 
 
ASIC research, uncovered by AFR journalist John Kehoe, has shown that these loopholes are devastating for ordinary mum-and-dad investors. On average, these products delivered negative returns in excess of six per cent – and the worst performers paid more in conflicted remuneration. 
 
But more than a year after Commissioner Hayne closed the book on the Banking Royal Commission, the Abbott-Turnbull-Morrison-Truss-Joyce-McCormack Government is still covering for dodgy financial advisers who exploit loopholes. 
 
As Commissioner Hayne said in his final report – exemptions to the ban on conflicted remuneration should be eliminated. 
 
Labor agrees with Commissioner Hayne.  
 
It’s time for the Coalition to stop covering up loopholes and running a protection racket for dodgy financial advisors.