UK financial regulator floats allowing 10% crypto allocations for retail funds
The Financial Conduct Authority floated the idea of allowing limited exposure to crypto for retail-focused funds if it aligns with “disclosed investment objectives.”
The UK’s Financial Conduct Authority has proposed allowing some authorized investment funds to hold up to a 10% allocation of crypto exchange-traded notes, closing a regulatory gap between retail investors and funds.
The FCA floated the idea in a quarterly consultation paper on Friday, which would allow retail-focused funds called undertakings for collective investment in transferable securities, or UCITS funds, and some non-UCITS funds to gain exposure to crypto.
The regulator said it wanted authorized funds to “remain contemporary and consistent with the demands of investors” while ensuring consumers “are adequately protected and markets function well.”