FCA Steps in to Halt Mini-Bond Sales

Regulator to impose temporary ban on mini-bond sales to retail investors next year amid concerns over the promotion of these high risk and hard-to-understand products

James Gard 26 November, 2019 | 10:46AM

FCA

The City regulator has banned the sale of mini-bonds in the wake of a number of a scandals that have cost investors millions in the past few years.

The Financial Conduct Authority (FCA) has intervened to temporarily stop the promotion of mini-bonds to most retail investors for the whole of 2020. Usually, the FCA would need to have a consultation period, seeking views from the industry and consumers, but the regulator is using its “temporary product intervention” powers because of “our significant concerns with the widespread marketing of these products”.

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James Gard  is content editor for Morningstar.co.uk

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