On 1 August 2025, the Financial Conduct Authority (FCA) issued a press release stating that it was opening retail access to crypto exchange traded notes (cETNs).

On 6 June 2025, the FCA published Consultation Paper 25/16: Quarterly Consultation Paper No.48 (CP25/16). In chapter 4 of CP25/16 the FCA set out various miscellaneous amendments to the Handbook which included lifting the ban on the retail sale, marketing and distribution of cETNs where admitted to a UK recognised investment exchange (RIE) and categorise these cETNs as Restricted Mass Market Investments (RMMIs). The deadline for comments on these proposals was 7 July 2025.

In Handbook Notice 132 the FCA Board approved on 31 July 2025 the Conduct of Business (Cryptoasset Products) Instrument 2025.

In summary, this instrument makes changes to the FCA Handbook to enable the sale, distribution and marketing of cETNs to retail clients where these cETNs are admitted to trading on a UK RIE. The changes also categorise UK RIE cETNs as RMMIs and apply marketing restrictions including risk warnings and appropriateness testing.  

The instrument comes into force on 8 October 2025.

Firms are reminded that in offering cETNs to retail consumers they will also need to comply with the Consumer Duty. This includes obligations to act to deliver good outcomes for retail consumers (Principle 12) and to avoid causing foreseeable harm to retail customers (PRIN 2A.2.8R). Among other requirements, manufacturer firms will need to specify a target market and ensure that the design of the products and services meets the needs, characteristics and objectives of the target market. Manufacturer firms must also take all reasonable steps to ensure the product is distributed to the target market.