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.
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.
1. Letter from the Chairs to Carillion’s major shareholders 26 January 2018
31/01/2018 - Inquiry: Carillion joint inquiry - Business, Energy and Industrial Strategy Committee
- View source
Found: Following the compulsory liquidation of Carillion Plc and its subsidiaries announced on
15 January 2018
2. Written Evidence: Agenda, the alliance for women and girls at risk (DAB17) (PDF)
31/10/2019 - Bill Documents
Found: evidence submitted by
e alliance for women and girls at risk
UK Government Green Financing
The Green Gilt and NS&I’s Green
Found: of the government.
Since 28 November 2016, when the legislation putting the OTS onto a statutory
The Chancellor of the Exchequer has overall responsibility for the departmen
t. The Chancellor is
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