Bestinvest has joined Hargreaves Lansdown in pulling certain investment trusts off its platform because fund providers had failed to update their literature to comply with EU regulations.
Bestinvest said the situation is "fluid" as the trusts concerned are updating the documents, and being put back onto the platform, on an ongoing basis.
Fund platform Hargreaves Lansdown said it expects to put dozens more investments back onto its platform in the coming days, after more than a thousand were removed from the platform on Tuesday (2 January) for not having complied with the new rules.
The pan-European regulation - known as Priips - which came into force on 1 January, require that all funds available to retail investors in the UK must have a Key Investor Information Document (Kiid).
Danny Cox, head of communications at Hargreaves Lansdown, said around 1,200 exchange traded funds (ETFs) were removed from the platform, as the relevant fund houses had not provided the required documents.
Mr Cox said the vast majority of the ETFs removed are domiciled in the US and not widely held by UK investors. He does not expect many of those ETFs to come back onto the Hargreaves Lansdown platform as they do not need to produce a Kiid document for their US clients.
Mr Cox said hundreds of investment trusts were also removed from the platform for not having a Kiid document, though “most have now got their ducks in a row” and updated their documentation.
There are about 40 investment trusts left to comply with the rules and he expects this to happen “within days rather than weeks".
Bestinvest said it did not have many of the US domiciled products on its platform, so the number of funds affected is far less than is the case with Hargreaves Lansdown.
David.Thorpe@ft.com
