Blackmore Bond

(asked on 1st March 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps the Government plans to take in response to the statutory report submitted by the Joint Administrators of Blackmore Bond plc.


Answered by
John Glen Portrait
John Glen
Economic Secretary (HM Treasury)
This question was answered on 4th March 2021

The Government is aware of the failure of Blackmore Bond plc and the latest report submitted by the Joint Administrators in December. Blackmore Bond plc issued non-transferable debt securities (sometimes known as mini-bonds). It is not a regulated activity for firms to issue their own non-transferable debt securities. However, in the UK, responsibility for regulating the promotion and marketing of mini-bonds lies with the Financial Conduct Authority (FCA).

On 1 January 2021 the FCA made permanent rules banning the promotion of high risk ‘speculative illiquid securities’ (including some mini-bonds) to ordinary retail consumers. These rules were introduced in response to the failure of London Capital & Finance and concerns about the suitability of speculative illiquid securities for retail investors. This ban prevents future companies like Blackmore Bond plc marketing their products to retail investors. The Treasury is currently undertaking a review into the regulatory framework for mini-bonds and will launch a consultation later this year on the regulation of non-transferable debt securities.

In view of the FCA’s role as an independent non-governmental body it would not be appropriate for Government to comment on the FCA’s handling of Blackmore Bond plc. Investors who have concerns about the FCA’s handling of the failure of Blackmore Bond plc can make a complaint using the FCA Complaints Scheme.

This content was generated for your convenience by Parallel Parliament and does not form part of the official record.
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Recent Speeches related to Blackmore Bond

1. Financial Conduct Authority and Blackmore Bond plc
30/06/2021 - Commons Chamber

1: is when the Dispatch Box on the Government side will be sanitised. I ask the Minister not to touch it until - Speech Link
2: of the House to the collapse last year of Blackmore Bond plc and in particular to look at what the Financial - Speech Link
3: attention was drawn to the boiler-room tactics of Blackmore Bond and the fact that it was pretty much a Ponzi - Speech Link

2. Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill
08/06/2021 - Commons Chamber

1: necessary for the Government to step in.Clause 1 relates to a new Government scheme to compensate - Speech Link
2: because of Dame Elizabeth Gloster’s excoriating report into the capacity of the Financial Conduct Authority - Speech Link
3: of all the findings in Dame Elizabeth Gloster’s report. More particularly there is fresh thinking, one - Speech Link

3. Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill (Second sitting)
15/06/2021 - Public Bill Committees

1: Please note that decisions on amendments do not take place in the order that they are debated but in - Speech Link
2: Secretary of State shall lay before Parliament a report that considers the circumstances and impact of - Speech Link
3: Secretary of State must lay before Parliament a report that assesses the impact of the payment of compensation - Speech Link

4. Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill
22/09/2021 - Commons Chamber

1: Secretary of State must lay before Parliament a report that assesses the impact of the payment of compensation - Speech Link

5. Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill (Third sitting)
08/07/2021 - Public Bill Committees

1: understand clause 1, I will briefly take us back to the Local Government Finance Act 1988, which requires - Speech Link

Latest Speeches
Recent Questions related to Blackmore Bond
1. Blackmore Bond
asked by: Peter Grant
04/03/2021
... what steps the Government plans to take in response to the statutory report submitted by the Joint Administrators of Blackmore Bond plc.

2. Blackmore Bond: Insolvency
asked by: Peter Grant
16/03/2021
... what specific steps his Department is taking in response to the statutory report filed with his Department by the Joint Administrators of Blackmore Bond plc on the conduct of the Directors of Blackmore Bond plc during the three years immediately prior to the company going into administration.

3. Blackmore Bond: Insolvency
asked by: Peter Grant
04/03/2021
... what assessment he has made of the adequacy of the Financial Conduct Authority’s response to concerns raised in 2017 on the sales practices being used by Blackmore Bond plc and its representatives.

4. Blackmore Bond: Insolvency
asked by: Peter Grant
04/03/2021
... what assessment he has made of the adequacy of protection for investors since the collapse of Blackmore Bond plc.

5. Blackmore Bond: Insolvency
asked by: Justin Madders
26/05/2021
... what discussions he had with people who lost their life savings as a result of the collapse of Blackmore Bond Plc prior to making the decision not to establish a compensation scheme.

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