The Financial Conduct Authority has censured Equity for Growth (Securities) Limited (EFG) for approving financial promotions relating to minibonds that were unfair, unclear and misleading.
The FCA found that EFG-approved promotions failed to disclose high commission fees paid to appointed representatives and other introducers for marketing the minibonds.
The promotions also did not make clear that these fees would be deducted from investors’ money.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said firms must ensure financial promotions provide investors with clear and transparent information, particularly around charges and their impact on investments.
The High Court ordered EFG to be wound up on 25 March 2026 following an FCA petition and restrictions placed on the firm’s regulated activities after it was found to be insolvent.
Investor claims will now be assessed by the Financial Services Compensation Scheme. The FCA confirmed it will not impose a financial penalty due to the firm’s insolvency, although it said the penalty would have been £386,467 if one had been issued.