Source · Select Committees · Treasury Committee
Recommendation 25
25
Deferred
In light of the recent failings of several mini-bond issuers and the nature of the...
Recommendation
In light of the recent failings of several mini-bond issuers and the nature of the existing regulatory arrangements, the Treasury should proceed with its analysis as soon as the consultation on the regulation of non-transferable debt securities closes, and it should aim to publish the outcome by the end of September 2021. In publishing its response, it should also publish a way forward that can be implemented rapidly. (Paragraph 139) Consumer responsibility and compensation
Government response summary AI-generated
The Treasury aims to publish its response to the consultation on non-transferable debt securities and bring forward plans for legislation in the autumn, following the consultation's closure in July 2021.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
18 Second Special Report of Session 2021–22 As of 1 January 2020, we brought in a temporary ban on the mass marketing of Speculative Illiquid Securities (SIS), including speculative mini-bonds, to retail investors. In January 2021 we made the temporary ban permanent. Following the ban, the Non-Transferable Debt Securities market has declined significantly, as described in the research paper by London Economics for HM Treasury. We believe that in order for further interventions in this market to be effective, it is important to consider the interaction with wider changes being considered to how securities can be offered and distributed to retail investors, in particular, changes to the Prospectus Regulation that HM Treasury is now consulting on15 following the UK Listing Review by Lord Hill.
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