FCA Ban on Mini Bond Promotions
The FCA have announced action today to stop mini bonds being sold to retail investors and only to high net worth individuals. Strangely enough I thought that was already the case and those buying the likes of LCF bonds had certified that they were eligible.
https://www.fca.org.uk/publications/temporary-product-interventions/temporary-intervention-marketing-speculative-mini-bonds-retail-investors
The rules that they have brought in seem to be fairly lax and could let some of the current players continue to operate. It appears that Buy2Let cars for example would be allowed to continue because they are promoting their own business despite falling under the same scenario of underplaying the risks to capital that mini bond companies do.
So the FCA are making a small step in the right direction but it remains to be seen whether some of those involved in the mini bond market who don't tend to follow the rules anyway take much notice of the new requirements.
Let's hope we're not still discussing consumers being ripped off by investment scams under the FCA's nose in 2021.
https://www.fca.org.uk/publications/temporary-product-interventions/temporary-intervention-marketing-speculative-mini-bonds-retail-investors
The rules that they have brought in seem to be fairly lax and could let some of the current players continue to operate. It appears that Buy2Let cars for example would be allowed to continue because they are promoting their own business despite falling under the same scenario of underplaying the risks to capital that mini bond companies do.
So the FCA are making a small step in the right direction but it remains to be seen whether some of those involved in the mini bond market who don't tend to follow the rules anyway take much notice of the new requirements.
Let's hope we're not still discussing consumers being ripped off by investment scams under the FCA's nose in 2021.
Comments
Post a Comment