The Financial Conduct Authority will ban the mass marketing of speculative minibonds to retail customers, the British regulator said on Nov. 26.
The ban will apply to arrangements where the funds raised are used to lend to a third party, invest in other companies or purchase or develop properties. There are exemptions such as listed minibonds, companies which raise funds for their own activities or to fund a single UK property investment. The restriction will come into force on Jan. 1 and last for 12 months while the FCA consults on making permanent rules.
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