UK financial regulator floats allowing 10% crypto allocations for retail funds
Summary
The UK Financial Conduct Authority proposed letting some authorized investment funds hold up to 10% in crypto exchange-traded notes, narrowing a gap between retail access and fund rules. The change would apply to retail-focused UCITS funds and some non-UCITS funds, provided crypto exposure fits the fund’s stated objectives and risk profile. The FCA said the cap is meant to protect consumers while keeping funds relevant to investor demand. It would keep retail funds from taking significant crypto exposure, citing crypto’s speculative nature. Unregulated and qualified investor schemes could still invest without a cap, but they cannot be sold to retail investors. The consultation runs for five weeks, until July 13.
