Key Takeaways
- • The UK Financial Conduct Authority (FCA) is proposing to relax its current restrictions on investment funds that wish to invest in exchange-traded notes (ETNs) linked to crypto assets.
- • The change is a proposal, not a finalized rule, so the existing restrictions remain in force until the FCA concludes its consultation.
- • Asset managers with UK-regulated funds that have been limited in crypto ETN exposure could gain more room to allocate to these products if the proposal is adopted.
Summary
The UK's Financial Conduct Authority is proposing to relax its current restrictions on investment funds that want to invest in exchange-traded notes tied to crypto assets, according to a summary published by Hogan Lovells Cadwalader on JD Supra. The article frames the move as a regulatory easing that would give funds more flexibility in gaining crypto exposure through ETNs.
The proposal is still at the proposal stage. The source does not detail the specific rule changes, the scope of eligible funds, or the timing of any final decision, so those points should be confirmed against the FCA's published consultation materials.
The proposal is still at the proposal stage. The source does not detail the specific rule changes, the scope of eligible funds, or the timing of any final decision, so those points should be confirmed against the FCA's published consultation materials.
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