The Financial Conduct Authority (FCA) will temporarily ban the mass marketing of speculative mini-bonds to retail customers for 12 months from 1 January 2020 while it consults on making permanent rules.
The financial watchdog said the ban will mean that unlisted, speculative mini-bonds can only be promoted to investors that firms know are sophisticated or high net worth. The move comes ahead of 'ISA season', as it is common for mini-bonds to have ISA status, or claim they do. The ban will only affect more "complex and opaque" arrangements where the funds raised lend to a third party, invest in other companies or purchase or develop properties. Four arrested as SFO investigates collapsed London Capital & Finance The FCA typically has limited powers over the issuers of speculati...
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