Google must help stop illegal marketing of mini-bond schemes: UK regulator

Google must do more to stop illegal online marketing of money-making schemes that can lead to small investors losing their savings, Britain’s regulator said on Tuesday after it banned mass-marketing of mini-bonds.

The ban comes almost a year after the collapse of London Capital & Finance, which had issued unregulated mini-bonds worth 237 million pounds ($304 million) to 11,600 investors, who face losing much of their money.

The average investment for mini-bonds is 25,000 pounds, but they are not regulated by Britain’s Financial Conduct Authority (FCA). Mini-bonds have been heavily promoted online, offering high returns, and the watchdog has powers over marketing material.

FCA Chief Executive Andrew Bailey said the watchdog wanted web services companies, especially Google, to help it stop illegal promotions online.