Treasurer Josh Frydenberg has announced he is closing a loophole to prevent mis-selling of listed investment funds to retail investors, by banning sales commissions paid by fund managers to financial advisers and stockbrokers.

Following a review by Treasury and the securities regulator, Mr Frydenberg will ban conflicted remuneration including "stamping fees" for newly floated listed investment companies (LICs) and listed investment trusts (LITs).