Platforms began reviewing funds as Priips (Packaged Retail Insurance-based Investment Products) and Mifid II came in to full force last week.
Priips required each fund to have a Key Information Document (KID) available online for investors as of 1 January and funds failing to provide this were suspended.
Bestinvest suspended three trusts, two of which were International Biotech and Baring Emerging Europe, and who have now provided KIDs.
A spokesperson at Bestinvest said: “We use a third-party data vendor to supply links to the KIDs prior to a purchase. We are working with our data vendor to identify cases where Priip compliant documentation is not in place and, where this is the case, we have and will temporarily suspend access to dealing in these.
“The situation is incredibly fluid as trusts have been rapidly supplying these over the last couple of days. We will be checking with our data supplier which new KIDs have come in and which remain absent throughout the day.”
However, they added that the impact of the new regulations on Bestinvest will not be as great as Hargreaves Lansdown as “most of those removed from their [HL] platform were US domiciled ETFs and investment companies which we did not offer access to in the first place”.
Recent reports suggested that Hargreaves Lansdown suspended 1,200 exchange traded funds (ETFs) after they failed to provide the correct documentation. A large majority of these are believed to be US domiciled.
An AJ Bell spokesperson confirmed they have not yet suspended any funds, but insisted they were also cracking down on funds not complying with the regulation.
The firm said: “We are reviewing all investment trusts and ETFs on the platform and requesting the required disclosure documents from them.
“Any that don’t provide the documents required by the Priips / Mifid regulations will be removed from the platform.”
