Ask the experts: Mini-bonds
What's so controversial about mini-bonds? Paul Alexander, local partner in the Milan office of law firm White & Case, explains
On 18 June 2020, the FCA published a consultation paper on high-risk investments, announcing its intention to permanently ban the marketing of mini-bonds to retail investors. This followed a temporary ban on the mass marketing of speculative mini-bonds to retail customers from 1 January 2020 until 31 December 2020. Earlier in 2019, mini-bond provider London Capital & Finance had gone bust, owing £237m to over 11,000 bondholders after customers were promised returns of 6.5%–8% on their investment.
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