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Google must help stop illegal marketing of mini-bonds

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Google must help stop illegal marketing of mini-bonds

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.

Axar.az reports that 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.

“We want to see more from Google, they have a responsibility given the reach and power of their tool,” Bailey told Reuters.

“We have got to reach a point where we understand that where a test is passed, that we can demonstrate a site is harmful, that they are prepared to take it down,” Bailey said.

Date
2019.11.26 / 18:32
Author
Axar.az
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