Fund platform and financial services firm Hargreaves Lansdown (HL) will remove its Wealth 50 fund buy-list 16 months after it was launched, Investment Week understands.
According to a report from The Times, HL will overhaul its fund recommendation list in favour of a new Wealth Shortlist, which will be overseen by an independent panel, two of whom will be new appointments to the company hired to oversee investment decisions and governance issues.
The Wealth 50 list was previously the larger Wealth 150 list until January 2019 until it was slimmed down by the firm. It came under fire last year, however, following the collapse of the LF Equity Income fund - formerly known as the LF Woodford Equity Income fund - which was re-awarded a coveted position on the buy-list as part of its regular rebalance just three weeks before the entire company folded amid a liquidity scandal.
The buy-list shake-up comes as part of a broader effort to revamp HL's fund recommendation process, which will also include improved, more transparent research notes on each fund chosen.
The Wealth Shortlist will be assessed by a product governance committee with a renewed focus on criteria for when funds are underperforming, and all decisions made will be overseen by a separate oversight team.
According to reports, the Wealth Shortlist was due to be launched imminently, although this has been delayed by the coronavirus pandemic. HL declined to comment on the launch of the new list.