UK FCA Proposes Allowing Retail Investment Funds to Hold Up to 10% Crypto Exposure

Odaily Planet Daily News The Financial Conduct Authority (FCA) has proposed in its quarterly consultation paper allowing certain approved investment funds (including UCITS funds and some non-UCITS funds) to hold up to a 10% share of cryptocurrency exchange-traded notes. The proposal aims to align approved funds with investor demand while ensuring adequate consumer protection.

The FCA stated that given the speculative nature of the underlying crypto assets, it would be inappropriate for retail-focused funds to have significant risk exposure to crypto products, and the 10% cap sets a conservative limit. Additionally, the FCA is seeking public opinion on whether non-regulated and qualified investor schemes should be allowed to invest in more speculative assets without a holding limit. This public consultation will last for five weeks until July 13. (cointelegraph)