Britain’s top markets regulator has warned unregulated firms are encouraging people to invest in high-risk schemes.

Enticing websites, marketing campaigns and social media finfluencer promotions are promoting unlisted loan notes and mini-bonds, often to finance property developments.

The Financial Conduct Authority said firms offering these products are relying on exemptions in the law that take them out of its remit, meaning far fewer protections for investors.

“Behind the glossy promotional and eye-catching brochures can sit high risk, opaque or even non-existent enterprises,” the FCA says.

You are unlikely to be able to take complaints to the Financial Ombudsman Service or claim through the Financial Services Compensation Scheme. 

“That may make it much harder to get your money back if something goes wrong,” the FCA adds.