Concerns focus on small investors as €500m flows into unregulated loan note projects

There is little protection for small investors when things go wrong, leading brokers say

Loan notes involve investors putting up around €80,000 or more than €100,000 into projects to boost their own savings or for a personal pension. In many cases, the cash goes into commercial or residential property projects at home or abroad. Picture: Mac Innes

There are growing concerns in the investment brokerage industry about the hundreds of millions in cash raised since the last financial crash from ordinary households and injected into unregulated loan note investments.

Two leading brokers estimate that €500m has been raised by brokers since the last financial crisis from loan notes for investment projects that give little protection for small investors when things go wrong.