UK retail investors can now access crypto ETNs
Firms must comply with Consumer Duty, client assessments, and financial promotion rules when offering cETNs.
The FCA has lifted the ban on retail access to certain crypto exchange trade notes (cETNs), effective 8 October. UK consumers can now invest in cETNs listed on the Official List and traded on a Recognised Investment Exchange.
Firms offering cETNs must meet strict requirements. Products are categorised as Restricted Mass Market Investments (RMMIs), meaning financial promotions cannot include incentives, and firms must carry out appropriateness assessments, client categorisation, and risk disclosures.
Compliance with the Consumer Duty is also required, including acting in good faith, avoiding foreseeable harm, and ensuring products meet the needs of the target market.
The FCA emphasises that cETNs are complex products, and firms should have the correct permissions to offer them. Those seeking authorisation or new permissions can request pre-application support meetings.
The regulator is also advancing its crypto roadmap to integrate crypto assets more fully into its regulatory framework, with ongoing consultations on applying Handbook rules to crypto activities.
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