AJ Bell has added to the outcry over retail brokers restricting investors from buying out-of-favour investment companies on the grounds that they are poor value.

The share-dealing platform has confirmed to Citywire that Chrysalis Investments (CHRY ) and Bluefield Solar Income (BSIF ) were among listed funds where online trading had been stopped after they failed fair value assessments conducted on behalf of the broker.

However, a spokesperson said investors could phone through a transaction and still pay the online charge of £5 rather than the normal phone fee of £25.

On online forums customers of AJ Bell complained they had also been prevented from buying Digital 9 Infrastructure (DGI9 ), Cordiant Digital Infrastructure (CORD ) and Amedeo Air Four Plus (AA4 ) for failing the fair value assessment carried out by external consultant 360 Fund Insight.

Investors are furious they are being prevented from buying closed-end funds trading on wide discounts that they regard as good value with their low share prices offsetting any potential concerns over performance and costs.

Tom Poynton of wealth manager Baron & Grant said: ‘They’re acting as DIY investment supermarkets and supermarkets don’t tell you what you can and can’t buy otherwise everybody would only every buy own-branded and the cheapest goods. When those investors are told they can’t, they become disgruntled and there’s a chance that they’ll vote for their feet.’

There is also concern that the fair value notices are encouraging investors to sell these companies, putting further pressure on their share prices.

AJ Bell apologised after contacting investors who did not hold the restricted funds or informing others that the investment companies had completed the fair value assessments when they had been done by 360.

The confusion was heightened as all of the above investment companies are based in the Channel Islands and are not required to provide the assessments.

‘Notifications were issued following fair value assessments and unfortunately in some cases administrative errors resulted in customers receiving incorrect messages,’ AJ Bell told Citywire.

Under the Financial Conduct Authority’s consumer duty regulation, share-dealing platforms say they are required to alert customers at risk of poor returns and help them make informed decisions.

Price, performance, leverage and liquidity are all factors in whether investment companies are regarded as fair value.

AJ Bell says it monitors funds through the assessments and if they have not completed one, outsources the requirement to 360.

Its move follows similar restrictions by other investment platforms.

Hargreaves Lansdown has also restricted investors from buying Digital 9 Infrastructure, Cordiant Digital and Amedeo Air Four Plus until they pass a questionnaire showing they have the understanding of ‘complex investments’.

While Cordiant and Amedeo are listed on the London Stock Exchange’s specialist fund segment, Digital 9 is not but is still viewed as ‘complex’.

‘These questionnaires aim to protect clients from poor outcomes, and so provide information on the product type, including some of the associated risks, before testing whether the client has an appropriate level of knowledge and experience,’ Hargreaves told Citywire.

AJ Bell also requires investors to complete an online ‘appropriateness assessment’.

‘It’s sheer stupidity that I can buy a hopeless share at big risk of going bust like Superdry, but can’t buy a pooled investment like DG19 without this farcical test. Pointing out that I was a very experienced investor in investment trusts fell on deaf ears,’ said one bulletin board member who failed Hargreaves’ questionnaire.

As previously reported, Fidelity’s platform bars purchases in AVI Global (AGT ), MIGO Opportunities (MIGO ), RIT Capital Partners (RCP ) and Abrdn Private Equity Opportunities (APEO ) although existing investors are allowed to top up their positions.

Interactive Investor also requires investors to certify they understand the risk of more complicated investment companies, including Digital 9, before allowing investment.

Poynton added: ‘I do sympathise with the platforms. They are trying to interpret what their role is in this. Some investment trusts are designating themselves as complex and the platforms can take it upon themselves to do so, then insist on investors taking a test. But what’s an appropriate test? What expertise is needed?’