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From 8th October 2025, firms will be able to give retail customers access to crypto Exchange Traded Notes (ETNs), provided that they are traded on an FCA-approved, UK-based investment exchange. This is part of the FCA’s strategic objective to support market growth and make the UK more internationally competitive.  

The COBS financial promotion rules will apply to these products to ensure that consumers get the right information and are not offered inappropriate incentives to invest. To ensure compliance with this, it is important for all firms to have a clear marketing policy that sets out a framework for marketing materials, including a review process conducted by an appropriately trained member of staff. As with mainstream products, a core principle for the marketing of crypto ETNs is that promotions are ‘clear, fair and not misleading’ so that consumers can make informed decisions about their finances.

As consumers will not be covered by the FSCS, it is particularly important for them to understand the risks of these products before they invest. This puts an onus on firms to provide consumers with information that presents a balanced view and confirm that consumers understand the risks involved. An appropriateness assessment that includes checking a consumer’s risk awareness should be completed during the onboarding process and must have been completed within the previous 12 months when adding funds. Consumers who do not understand the nature of the high-risk product should not be onboarded as this will not provide good outcomes for the consumer, as required by the Consumer Duty.

How Thistle Initiatives Can Help

With extensive experience in financial promotions, digital assets, and consumer protection, Thistle can help ensure your firm approaches crypto ETNs with confidence, compliance, and credibility. Specifically:

• Analysing your existing marketing materials framework and identifying any gaps;
• Creating a comprehensive crypto ETN appropriateness assessment for consumers;
• Designing bespoke policies and procedures for your firm;
• Acting as a third line of defence for reviewing new marketing materials.