The ban on the mass-marketing of minibonds will be permanent.
The Financial Conduct Authority said yesterday that temporary ban on the minibond promotions, which began in January and was due to expire at the end of the year, would become indefinite.
More than 63,000 savers have invested £1.4bn in the high-risk investments.
The regulator’s permanent ban applies to the most opaque and complicated securities that are used to raise money to make investments, lend to third-parties, or finance property developments.
It means that companies will only be allowed to market such bonds to sophisticated or high net-worth individuals.