The FCA has today announced proposals to make permanent its ban (first introduced on a temporary basis in January) on the mass-marketing of speculative illiquid securities, including speculative mini-bonds, to retail investors.
Listed bonds with similar features to speculative illiquid securities and which are not regularly traded will be brought within the scope of the ban.
One consequence of the ban is that products caught by the rules may only be promoted to investors that firms know are sophisticated or of high net worth.
Marketing material produced or approved by an authorised firm will also have to include a specific risk warning and disclose any costs or payments to third parties that are deducted from the money raised from investors.
Link to related article: https://www.fca.org.uk/news/press-releases/fca-make-mini-bond-marketing-ban-permanent