Labor welcomes the publication of the final report of the Senate Economics References Committee inquiry into Forestry Managed Investment Schemes (FMIS).

The collapse of FMIS such as Timbercorp and Great Southern during the GFC affected thousands of hard-working Australians.

Evidence to the Committee made it clear that inappropriate financial advice and legal loopholes allowing retail investors to be exposed to risks significantly above their capacity to absorb losses caused significant financial damage to victims.

The previous Labor Government introduced changes to laws governing both financial advice and responsible lending practices, including the Future of Financial Advice (FOFA) reforms.

The committee provides 24 recommendations which will now be considered by the Opposition, including proposals to include investment loans in responsible lending laws, compensation schemes for victims of the collapse and appropriate ASIC powers to minimise the chance of these kinds of collapses in the future.

Labor takes this opportunity to thank the staff and witnesses involved in this inquiry.