Financial Conduct Authority  

FCA bans marketing of mini-bonds

"We have significant concerns that increasing numbers of less sophisticated or less wealthy retail investors will be drawn to these products by promotions that focus on attractive "headline" interest rates, while down playing key risks and implying products are more secure than they are in practice."

The FCA estimates the average amount currently invested by consumers in illiquid speculative securities is more than £25,000 per investor, which the regulator warned would lead to "significant" losses should a provider fail. 

rachel.mortimer@ft.com 

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