Imagine a financial product is considered so risky that the regulator says it should not normally be marketed to ordinary consumers. You’d assume that was the end of the matter, but apparently not.

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The Financial Conduct Authority (FCA) has issued a fresh warning about unregulated loan notes and mini-bonds after continuing to see consumers lose money in these high-risk investments. The recent collapse of Woodville Consultants is one example cited by the regulator.

The FCA banned the mass marketing of speculative mini-bonds and loan notes to ordinary retail investors from 2021. Yet consumers can still encounter them through social media adverts, websites and introducers promising attractive fixed........

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