Changes to franking credits could encourage companies to begin funding themselves with debt rather than equity in a “return to the bad old days”, the newly appointed director of listed investment company, WAM Capital, and former Morrison government adviser, Angus Barker, has said.

The former investment banker and chief of staff to then financial services minister Jane Hume joined the WAM Capital board on January 3. WAM Capital manages just over $1.5 billion, while Wilson Asset Management manages just under $5 billion.