Financial Conduct Authority allows firms to offer retail investors crypto exchange traded notes subject to UK exchange listing

The Financial Conduct Authority has announced changes that will allow firms to give retail consumers access to crypto exchange traded notes (cETNs), reversing its previous restriction on retail access to these products. Retail-accessible cETNs will need to be traded on an FCA-approved, UK-based investment exchange that is a Recognised Investment Exchange. Financial promotion rules will apply to cETN offerings to retail consumers, with the FCA highlighting the need for consumers to receive appropriate information and not be offered inappropriate incentives. The Consumer Duty will apply to firms offering these products, but investments will not be covered by the Financial Services Compensation Scheme. The FCA confirmed its ban on retail access to cryptoasset derivatives remains in place and said it will continue monitoring market developments and its approach to high-risk investments. The FCA stated the change will come into force on 8 October 2025.