Fern Trading Limited, a £3.5bn trading group owned by Octopus Investments, has drawn regulatory attention for its valuation methods. The UK Financial Conduct Authority (FCA) is investigating how the company’s directors determined a 59% premium over its audited net asset value of £2.2bn. This premium, unusual in private markets, has attracted 18,000 retail investors despite Fern’s £420mn pre-tax loss and rising debt.

Critics argue the valuation lacks transparency, with former directors acknowledging efforts to obscure details about telecoms assets in annual reports.