UK financial regulator floats allowing 10% crypto allocations for retail funds

Written by Jesse Coghlanstaff editorReviewed by Felix Ngstaff editorWritten by Jesse Coghlanstaff editorReviewed by Felix Ngstaff editorUK financial regulator floats allowing 10% crypto allocations for retail fundsLatest NewsPublishedJun 9, 2026The 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.”The proposal seeks to align rules on who can buy crypto products after the FCA lifted its ban on retail investors being able to trade crypto exchange-traded notes in August, as the regulator looked to align retail access to crypto with other countries.The FCA said in its consultation that its proposed 10% cap would “set conservative restrictions on assets to which a fund can be exposed, in exchange for allowing these funds to be marketed to retail consumers.”An excerpt from the FCA’s consultation pitching allowing retail funds limited exposure to crypto products. Source: FCAThe regulator added that it didn’t believe allowing retail-focused funds “to have significant exposure” to crypto products was appropriate, “given the speculative nature of the underlying cryptoassets.”Related: UK Lords warn BoE could regulate pound stablecoins into irrelevanceRetail funds that want to invest in crypto must also show that the …

UK financial regulator floats allowing 10% crypto allocations for retail funds

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