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FCA data show that at least 25 minibond issuers have gone bankrupt since 2018

Since 2018, at least 25 minibond issuers have gone bankrupt, according to data from the Financial Conduct Authority.

This is a request for freedom of information submitted to the FCA. Money marketing I will clarify.

Still, FCA is not a regulated activity and does not collect data on the issuance of minibonds from companies on a regular basis.

As a result, the total number of Minibond issuers that have entered liquidation may increase.

Regulators have also identified that these companies may have come into power for reasons unrelated to their activity in the mini-bond market.

The FCA states: Pandemic, that may be the reason why the company failed. “

Year Number of collapsed minibond issuers
2018 3
2019 7
2020 Ten
2021 Five

Regulators could not know how much the collapse of minibond issuers cost investors.

This is because the FCA does not collect data from this type of company on a regular basis.

Money marketing We also asked the FCA how much the collapse of minibond issuers has cost regulators over the last five years.

Unfortunately, it couldn’t provide the answer.

The FCA states: “As a normal activity across many business areas throughout the organization, it forms part of the business and therefore does not retain information in the manner required in the last five years.”

The Financial Services Compensation Scheme has begun to provide compensation to eligible London Capital and Finance bondholders under the Government scheme...

In the update, the organization said it sent a letter to about 1,000 bondholders last week (from 22nd November).

The letter contains details about what they need to do to accept the offer. It also provides a description of payment terms and some calculation examples.

The FSCS said it would contact everyone “as soon as possible”.



FCA data show that at least 25 minibond issuers have gone bankrupt since 2018

Source link FCA data show that at least 25 minibond issuers have gone bankrupt since 2018

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