FSCS publishes factsheet on investing in mini-bonds

Article summary

The Financial Services Compensation Scheme (FSCS) has published a factsheet on investing in mini-bonds, which are described as ‘essentially a kind of loan you give to an investment company (the issuer)’. The FSCS has issued a number of pointers alongside it including advice that investors should not invest money they cannot afford to lose or that they might need to access before the investment term is over, and that generally it is a bad idea to invest more than 10% of a person’s net wealth in mini-bonds.