FCA Sets Out Landmark Package to Boost UK Investment Culture, Eases Crypto Barriers

Key Reforms to Enhance Retail Investment Access

The Financial Conduct Authority (FCA) announced a comprehensive regulatory package on December 8, 2025, designed to dismantle barriers that prevent millions of UK adults from participating in retail investments. This initiative directly addresses stagnant participation rates, where only 25% of adults currently hold investments outside pensions.

By easing rules on advice, platforms, and product availability, the FCA seeks to unlock broader market engagement while maintaining consumer protections. The package responds to post-pandemic shifts, in which savers face eroded returns amid high inflation, pushing demand for diversified assets, including crypto-linked products. Central to the reforms, the FCA will permit exchange-traded notes (ETNs) tracking volatile assets like cryptocurrencies, marking a cautious entry for digital assets into mainstream savings vehicles such as ISAs.

Crypto ETNs and Advice Reforms to Drive Adoption

Key changes eliminate the 0.75% cap on performance fees for funds, enabling more performance-aligned products that could attract crypto enthusiasts seeking higher yields. The FCA also plans to broaden “mass market” advice models, allowing platforms to offer simplified guidance to retail clients without complete bespoke suitability checks. This targets the 11 million working-age adults excluded from investments, potentially channelling funds into a £1.1 trillion ISA ecosystem.

For crypto specifically, ETN approvals under tightened safeguards, such as leverage limits and clear risk disclosures, signal a regulatory thaw. This aligns with global trends in which banks like SoFi now offer direct trading. Ireland- and Cyprus-based platforms like Kraken have already expanded their crypto derivatives offerings under MiCA, suggesting UK firms could follow suit to gain a competitive edge. These steps balance innovation with stability, as FCA data shows 40% of non-investors cite complexity as a deterrent.

Balancing Innovation with Consumer Protection

The FCA’s regulatory steps, including the cautious allowance of crypto ETNs, mark a pivotal moment to boost the UK’s investment culture and market access. This move is balanced by continued concern for consumer protection, especially for young, first-time investors. FCA Chief Executive Nikhil Rathi has previously warned that volatile assets like crypto can lead to total financial loss, noting that it is concerning that many under-35s choose crypto as their first investment over traditional assets. Consequently, while the new package opens up innovative pathways, the priority remains investor protection and the encouragement of long-term financial stability.