The UK’s financial watchdog has announced a temporary ban on the promotion of “mini-bonds” to retail investors, following a flood of questionable advertising and the collapse of London Capital & Finance, the investment company.

In a statement on November 26, the Financial Conduct Authority said it would apply advertising restrictions from January 1 for 12 months, while the regulator works on creating permanent rules for the products, which are illiquid debt securities sold to retail investors.