Britain is to regulate minibonds in the same way as shares, the government said on Tuesday, as it set out plans to make its capital markets more appealing to investors.
The UK Treasury proposed that issuers of minibonds — or bonds that cannot be traded — to the public had to trade on a regulated market. This “new, bespoke” regime would replace the current system in which minibond issuers were not required to offer investors any protection.
The move was among a series of post-Brexit reforms to capital market rules published following a consultation with the City last year. The Treasury also announced changes to private electronic marketplaces run by banks and high-frequency traders and introduced a new live database of trading information.