MINI-BOND CRACKDOWN

REGULATORS are preparing a crackdown on high-risk bonds at the heart of a scandal over collapsed savings firm London Capital & Finance (LCF).

Financial Conduct Authority boss Andrew Bailey has major concerns about mini-bonds, which let savers lend cash to small firms, including those turned down for credit by the banks. LCF promised returns up to 8pc but after it went bust it emerged funds had gone to just 12 firms, in what administrators described as ‘highly suspicious’ transactions.

Bailey is worried savers are not given enough warning they could lose all their cash.