CrowdLords ceases regulated activity following mini-bond clampdown

Property investment platform CrowdLords is set to cease regulated activity due to the ban on the marketing of speculative illiquid securities.

The platform, which let investors fund buy-to-let and development loans said the Financial Conduct Authority’s (FCA) ban meant it would have to cease trading in its current form.

The restrictions originally targeted the promotion of mini-bonds to retail investors but it was recently extended to limit the marketing of other debt securities such as listed bonds.

There are hopes that crowdfunding platforms will be exempt from the ban as they are regulated, unlike mini-bond providers.

But CrowdLords said in a post on its website that it has made the decision to cease all regulated activity with immediate effect.

“Although CrowdLords will no longer be an appointed representative of ShareIn Ltd, the existing platform will remain in place to allow you to access your account to monitor the progress of investments and receive updates,” the message said.

“As investments come to an end, the resultant returns and any return of capital will continue to be made via the existing platform.

“As the authorised and regulated entity, ShareIn Ltd will oversee this.”

New money cannot be transferred into its Innovative Finance ISA but old funds can still be held within the tax wrapper and can be withdrawn if needed.

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