Research and analysis

Prohibiting the sale to retail clients of investment products that reference cryptoassets: RPC Opinion (Red-rated)

Regulatory Policy Committee opinion on FCA's Prohibiting the sale to retail clients of investment products that reference cryptoassets

From:
Regulatory Policy Committee
Published
23 January 2023

Documents

RPC Opinion: Prohibiting the sale to retail clients of investment products that reference cryptoassets

PDF, 163 KB, 6 pages

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Details

The measure, implemented in 2021, prohibits the sale, marketing, and distribution of derivatives and exchange-traded notes (ETNs) that reference particular types of unregulated, transferable crypto-assets to all retail clients by firms in or from the UK. The RPC found that the BIT assessment had not included sufficient evidence to support the assumptions made, or adequately explained the approach to the cost benefit analysis undertaken to produce the EANDCB seeking validation. The assessment also failed to clearly establish what would happen to the market in the absence of the intervention, limiting the ability to determine the change resulting from the measure.

Published 23 January 2023