By Christophe95; cropped by Beyond My Ken (talk) 01:04, 6 April 2015 (UTC) (Own work) [CC BY-SA 3.0] via Wikimedia Commons
Some investment platforms in the United Kingdom have suspended hundreds of investment companies and exchange-traded funds (ETFs) because of their failure to comply with the new rules.
On Tuesday, it was reported that Hargreaves Lansdown had discontinued taking money for 296 investment companies and about 1,200 ETFs.
The said funds had not complied with the new Packaged Retail and Insurance-based Investment Products (Priips) regulation, which demands that they produce a document that is explaining risks to investors.
However, AJ Bell and Bestinvest have also admitted that they have suspended some funds, and are currently reviewing documentation.
A delay in terms of implementation was perhaps inevitable since the Priips rules were only finalised last September 2016.
“Something that should have had 12 months as a transitional period ended up with a matter of weeks,” said the head of the Association of Investment Companies, Ian Sayers, to Reuters.
Asset managers have been particularly busy in attempting to comply with another set of even larger regulations, known as the Mifid II, which was enforced on Wednesday.
Hargreaves Lansdown, however, said that the funds were quickly becoming more compliant. The number of investment companies which had still not produced the required document has dropped since Tuesday from 296 to around 40.