Tilney boots trusts from buy list over Mifid II fears

Danny Cox, head of communications at Hargreaves Lansdown said: “HL is one of the largest brokers of investment trusts in the UK and we provide research, information and comment to help investors with their decisions.

"The marketing influence of HL does not sit comfortably with the underlying illiquidity of most investment trust's closed-ended structure. HL currently rarely promotes investment trusts and does not include them on our Wealth 150 specifically due to these liquidity and pricing issues.”

He said a key problem is that a recommendation that a trust is a good investment may be made due to the share price being at a certain level, but the share price would move significantly in the event of a recommendation, changing the investment case.