FCA warns about mini-bonds and loan notes: what to check
Checked by The Proofmark editorial team against our methodology before publishing
The Proofmark · Our methodology
Why has the FCA warned about mini-bonds?
An advert offers a high, fixed return. It looks like a safe place for your savings. But you may be lending to a firm that could fail.
On 20 August 2026, the UK's Financial Conduct Authority warned about loan notes and mini-bonds from unregulated firms. It pointed to the failure of Woodville Consultants.
With these products, you lend money to a company. It promises interest. If it fails, you could lose all the money you put in.
What should make you pause?
The FCA flagged rushed sales, hidden fees and claims that assets make an offer safe. It also warned about sellers pushing people to call themselves wealthy or experienced investors.
A link to a licensed firm does not make every part of an offer safe. Check the firm that takes your money and the service it provides.
Are these investments protected?
This is a UK warning. The FCA says Ombudsman or FSCS cover is unlikely for these products. An exception may apply when a complaint involves an authorised firm carrying out a regulated activity.
Do not assume that UK cover applies in another country.
What should you do before you pay?
- Write down the firm's legal name and the product name.
- Check the firm and its permissions. Match the website and phone number too.
- Ask who owes you the money, how fees work and when you can leave. Get the answers in writing.
- Do not sign a statement about your wealth or experience if it is not true.
- Pause if you cannot explain how you could lose money. A sales call is not a reason to rush.
What if you have already invested?
Keep the agreement, adverts, bank records and messages. Ask the firm for a written account of your balance and the next steps.
If you suspect fraud, contact the bank or payment service you used promptly. Explain the payment and ask what help is available. Do not wait for a call from us.
If the firm has failed, check its official insolvency notices. Use those records to find the people handling claims. A message offering to recover your money is not proof of a real claim route.
Want help understanding the offer?
Request a free call. Tell us the firm, your country and whether you have paid. We can talk through the warning signs and the next checks. We cannot promise a refund.
Sources
Where to go in your country
Scams cross borders. The people who can do something about them do not. Choose your country below, or change it if our guess is wrong.
Choose your country to see local contacts. If it is not listed, you can ask our team for help.
🇬🇧 The United Kingdom
🔎 Check the firm
FCA Firm Checker — Search the firm name, its website, or the reference number it gave you.
🚨 Report it
Report Fraud (City of London Police) — Report online or call 0300 123 2040. In Scotland, call Police Scotland on 101.
↩ Ask for your money back
Financial Ombudsman Service — Complain to the firm first, then bring it here. Free, and it can order the firm to pay.
Every address above was opened and checked by us on 30 September 2026. Tell us if one has moved.
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