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Debenture Financial Promotions

Over the course of the past year, the FCA has been taking an increasingly keen interest in financial promotions for debentures, such as mini-bonds and loan notes.

See our Debenture Financial Promotions downloadable for full details.

Grey areas in the spotlight

You don’t currently need to be authorised by the FCA to issue unlisted or retail bonds. But you are required to ensure that all financial promotions for any bonds you approve are clear, fair and not misleading – and that the risks for investors are spelt out appropriately.

Following criticism of its handling of failed mini-bond issuer London Capital & Finance earlier this year – and fears over the possible failure of other similar firms – the regulator has signalled its intent to enforce these requirements more rigorously.

But its intervention won’t end there…

Turning up the pressure

Back in April, our blog on The FCA and misleading financial promotions outlined the early signs of a much more hands-on approach from the regulator. Then in May the FCA put out a notice to investors further underlining its intent to rein in perceived poor practice in this area. The current level of scrutiny is only likely to intensify. So if you’re involved in the unlisted or retail bond sector, it’s essential to ensure you’re complying fully with the current rules and regulations.

Find out more

Our Debenture Financial Promotions downloadable explains the likely scope of future FCA intervention – and what you’ll need to do to prepare.

We can help

In the meantime, if you’re concerned about your potential exposure to FCA enforcement action around debenture financial promotions, our specialist team can help. We can undertake a thorough review of your activities, your systems and controls, governance and due diligence arrangements, and your financial promotions.

We can then recommend whether and how you may need to adjust your approach to answer current regulatory concerns. This could involve updating the way you handle risk disclosures and financial projections in future promotions – or perhaps seeking authorisation, either in your own right or as an appointed representative.

Get in touch today by using the contact form on the right, by emailing info@thistleinitiatives.co.uk or by calling us on 0207 436 0630.


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