The UK’s Monetary Conduct Authority (FCA) has rejected complaints from buyers in collapsed mini-bond supplier Blackmore Bonds, saying that it “dealt with intelligence obtained concerning the agency appropriately”.
Blackmore Bonds was arrange in 2016 and raised cash to fund residential property improvement by issuing minibonds to buyers, promising rates of interest of as much as 10 per cent.
It stopped making funds to bondholders in late 2019 and by April 2020 it had gone into administration leading to important losses for buyers.
A probe into two regulated corporations – NCM Fund Companies and Northern Provident Investments – that accredited the monetary promotions for the mini-bonds, concluded that the promotions had been “largely correct and contained very related danger warnings to shoppers”, so the FCA didn’t take enforcement motion towards both agency.
Learn extra: Three regulation corporations unite to compensate Blackmore Bonds buyers
Traders have accused the FCA of failing to behave following warnings concerning the agency, failing to guard buyers and of permitting deceptive advertising.
They’ve requested the FCA to pay compensation and begin a felony investigation into Blackmore Bonds.
Learn extra: Blackmore Bond administration prices close to £3m
“The FCA has fastidiously thought-about the complaints and determined to not uphold them,” it mentioned. “The FCA by no means had any supervisory oversight of Blackmore, dealt with intelligence obtained concerning the agency appropriately and located beforehand that the monetary promotions had been largely correct and contained related danger warnings.”
The FCA mentioned it’s going to make a fee of between £150 and £250 to every complainant in recognition of how lengthy it took to reply to the complaints.