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Leading the way was Hargreaves Lansdown, which saw 12.7 per cent wiped off its value as a result of a Financial Services Authority proposal to ban undisclosed referral payments from fund managers.
Citigroup analysts told clients that the change is not unique to the company's product and suggested it is hard to see an alternative route.
"If this change was unique to Vantage, we would see significant flow risk as retail investors dealt with the culture shock of it changing ... to a paid-for service," explained the firm.
But Hargreaves Lansdown was not the only major company to losing value on the day, with IMI, GKN, Inmarsat and Shire all lost between 3.5 and 4.9 per cent.
Writing for the Guardian, Nick Fletcher noted that the FTSE 100 fared better than Wall Street, which was down 100 points at the time London closed.
Posted by Greg Secker
