Following its announcement of a 12-month marketing ban on minibonds being marketed to the general public, the FCA has confirmed that it is well aware that this could lead to existing minibond investors losing their money.
In a 46-page document outlining the ban, more specifically outlining how the ban complies with UK anti-discrimination law, the FCA stated:
There may be indirect positive or negative effects on people with protected characteristics as they may be (i) existing investors in speculative illiquid securitiesor (ii) prospective investors. The former may experience harm if market disruption from our measures exacerbates poor performance of existing products and the financial position of issuers that are already struggling, especially if an issuer isreliant on being able to raise further capital from retail investors with new issues and this becomes more difficult.
With a few exceptions, investors in collapsed unregulated investment schemes generally find sympathy in short supply.
The media will occasionally print the hard-luck story of a someone who invested their entire pension lump sum, or an injury compensation payment, but the news cycle usually moves swiftly on.
Reader Sally Jones has drawn my attention to some eye-opening posts over the past year from collapsed unregulated car park investment scheme Park First's Russian Instagram account.
All quotes below have been machine translated from the original Russian.
Smith & Williamson has succeeding in seeing off rival Quantuma's bid to investors to be appointed administrator of Park First.
A letter sent to Park First investors on Monday 2nd confirms Smith & Williamson's proposals for the administration were accepted in full.
At a court hearing in London last week, Carlauren Group was finally put into administration.
Lawyers for Carlauren investors alleged that Sean Murray transferred significant sums into his own personal account.
Murray responded that the money was accounted for and was just resting in his personal account.
Unregulated hotel investment scheme Signature continues to struggle with repayments to investors, and has been the subject of a series of news articles from outlets including the BBC and the Liverpool Echo in recent weeks.
Six months ago in May the BBC first covered Signature's late payments to investors.
Two weeks ago the BBC reported on international investors flying into the UK in attempt to chase their money.
Blackmore Bond is to delay its already-late October interest payment again, The Times reports.
Days before its October interest payment fell due, Blackmore announced that payment would be unilaterally delayed until November. That deadline has now also been missed.