Mr Tennant told The Sunday Times that the former star fund manager “made a rod for his own back”.

He said the industry needed to educate investors and should stop promoting daily dealing. Some in the Edinburgh, blame investors’ focus on short-term performance for Woodford’s fall from grace.

Mr Tennant added: “The whole industry is short-term now and it is very damaging. Those coming into pension funds in their younger years do not need liquidity. Why do we have daily valued funds for equities? All that does is persuade ordinary retail investors that equities are something you can invest in for a day, a week, a month.

“We need to… shift the focus from short-term thinking in investments. We must continue to provide money for private equity and private debt because those are the companies that grow. The market must recognise that and change.

“I’m not sure why Woodford put illiquid private equity holdings into a daily valued redeemable fund as well as into his investment trust. The redemptions in the open-ended fund put pressure on the trust. He made a rod for his own back.”