Financial advisers are warning a regulatory “loophole” is being exploited by other advisers who are being paid lucrative commissions to sell risky listed investment companies to retail investors and self-managed superannuation funds.

The share price collapses of Dixon Advisory’s US property fund and Melbourne hedge fund L1 Capital’s listed investment company (LIC), both listed on the Australian Securities Exchange, have triggered calls for regulators to crack down on advisers and brokers selling LICs and other listed funds.