Consumers warned to beware of risky mini-bonds and loan notes

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The Financial Conduct Authority warned that consumers investing in mini-bonds or loan notes from unregulated companies could lose their entire investment, citing the recent failure of litigation funder Woodville Consultants Ltd. Despite a permanent ban effective from 1 January 2021 on promoting speculative illiquid securities to retail investors, the regulator said consumers may still encounter adverts offering high fixed returns.