We urge consumers thinking of investing in high-risk securities, such as mini-bonds and loan notes, to continue to be cautious.
On 19 January 2026, the Public Offers and Admissions to Trading regime came into force. The regime sets new rules and standards about when an offer of securities to the public can be made.
A security is a financial instrument that represents some type of financial value (for example, shares, bonds and stock) that can be traded on a financial exchange.
The types of securities within scope of this regime include transferable securities (such as shares on a stock exchange) as well as non-transferable debt securities (including mini-bonds and loan notes[1]).
Investing in mini-bonds and loan notes
The nature of mini-bonds and loan notes makes them high-risk. Taking higher investment risks can be right for some people, depending on your circumstances. But you need to make sure you’re aware of the risks you’re taking.
You should check whether the firm you’re investing with is authorised.
If you’re offered these types of investments from a firm not regulated by the FCA, there are generally fewer protections available. You’re unlikely to be able to take complaints to the Financial Ombudsman Service or make a claim through the Financial Services Compensation Scheme. This may make it much harder to get your money back if something goes wrong (such as the firm going out of business).
We warned recently[2] about our concerns that people were being encouraged to invest in risky schemes without appreciating the extent of the risks.
We’ve seen adverts promising higher rates of return than mainstream investments. We’ve also seen examples of firms over-stating how safe your capital is and under-stating the very real risk of losing some, or even all, of your money.
High-risk investments are unsuitable for all but the most experienced investors. These investors fully understand the risks, as well as the opportunities, of high-risk investments and have the finances to deal with losses.
We’re gaining new powers as part of the new regime (including over unauthorised firms). But even with these new powers, we’ll still have a limited ability to deal with unauthorised firms.
What to consider if you’re thinking about investing in mini-bonds or loan notes
Know who you’re dealing with
The firm you are dealing with (the promoter) may be different to the firm who is investing your money. Use the FCA Firm Checker[3] to find out if these firms are regulated by us and have permission to offer you investment services. Also consider if the level of risk is right for you.
Know your rights
If firms are not regulated by us, opportunities for help if something goes wrong will generally be greatly reduced and you may lose all of your money.
Do your own research
Check reliable sources to verify information. Make sure you understand the full picture before investing. You can learn more about investing and risk through InvestSmart[4].
Look out for scams
When looking at high-risk investments, be especially wary of investment scams. The promise or suggestion of high returns can often be the sign of a scam, particularly if small print is used to try to minimise or hide risks. But some scammers may also list more realistic returns to seem more legitimate. Find out more about the warning signs of an investment scam and how to protect yourself[5].
You can check our Warning List[6] to find details of firms and individuals running scams or operating without our authorisation.
If you've lost money to a scam, contact Report Fraud[7] and then report it to us[8].
We can't help you get your money back, but we look into every report we receive, and it could help protect others.
