The Financial Conduct Authority has warned consumers to be aware of the risks of investing in loan notes and mini-bonds issued by unregulated companies.
The regulator said was continuing to see people lose money in these "high-risk" investments. The warning comes after the failure of Woodville Consultants, described as a litigation funder that raised capital from retail investors through unregulated loan notes. The FCA explained a loan note or mini-bond usually involves lending money to a company for a set period in return for interest. If that company fails, consumers could lose every penny, the regulator set out. These types of investments were permanently banned for retail investors by the FCA in January 2021. However, it s...
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