Minibond investors face claims after firm wound up

beehiveweb.co.uk editorial team 2026-07-30 10:41 3 min read

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The Financial Conduct Authority has censured Equity for Growth (Securities) Limited (EFG) after finding that financial promotions for minibonds were unfair, unclear and misleading. The firm was later wound up by the High Court, leaving investor claims to be assessed by the Financial Services Compensation Scheme.

Undisclosed commissions were central to the FCA action

The FCA said EFG approved promotions that did not disclose very high commission fees charged by appointed representatives and other introducers involved in marketing the minibonds to investors.

The promotions also failed to state that the fees would be deducted from investors’ money. The regulator said this meant potential investors did not have information needed to make a fully informed decision before investing. The issue was therefore not simply the existence of commissions, but the lack of clear information about their size and effect on the money being invested.

Appointed representatives conduct regulated activities under the responsibility of an authorised firm, known as the principal. In this case, the FCA’s concern focused on EFG’s role in approving the promotions and whether those communications gave investors a transparent picture of the charges attached to the minibonds.

Minibond investors face claims after firm wound up

What the winding-up order means for affected investors

On 25 March 2026, following an FCA petition and restrictions preventing EFG from conducting regulated activities, the High Court ordered the firm to be wound up on the basis that it was insolvent.

The court order changes the route for investors seeking redress. Because EFG is being wound up, claims by affected investors will be assessed by the Financial Services Compensation Scheme. Investors should use the FSCS claim process for information about how to make a claim.

The FCA’s censure does not itself establish that every minibond investor will receive compensation, or that all losses will be covered. The confirmed next step is the assessment of claims through the FSCS following the winding-up order.

Why the FCA imposed no financial penalty

The FCA said it decided not to impose a financial penalty because EFG is insolvent and being wound up. Any penalty would reduce the funds available to repay creditors.

The regulator said that, had it imposed a penalty, the amount would have been £386,467. The figure is a stated penalty calculation rather than a payment that EFG will now make. The censure remains the FCA’s formal action concerning the promotions approved by the firm.

Therese Chambers, the FCA’s executive director of enforcement and market oversight, said firms approving financial promotions must be transparent about high commissions taken from investors’ money and the effect those charges may have on investments. For investors who believe they were affected, the practical action identified by the FCA is to follow the FSCS process for information about submitting a claim.

Source: Financial Conduct Authority Press Releases

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The report was checked against the Financial Conduct Authority’s press release for the censure, court order, dates, penalty figure and investor-claims information.

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