The Financial Conduct Authority will lift its ban on retailaccess to cryptoasset-backed exchange traded notes on 8 October this year. Thisfollows a consultation that began in June.Retail investors will be able to access cETNs if they arelisted on FCA-recognised UK investment exchanges. These are referred to asRecognised Investment Exchanges.Firms Must Avoid Misleading Investment IncentivesThe FCA said firms must follow financial promotion rules.These rules are designed to ensure that retail clients receive clear andaccurate information. Incentives to invest must not be misleading orinappropriate.In January 2021, the FCA implemented a ban on the sale,marketing, and distribution of derivatives and exchange traded notesreferencing unregulated cryptoassets to retail clients.“Since we restricted retail access to cETNs, the market hasevolved, and products have become more mainstream and better understood,” DavidGeale, executive director of payments and digital finance at the FCA, said. “In light of this, we’re providing consumers with morechoice, while ensuring there are protections in place. This should mean peopleget the information they need to assess whether the level of risk is right forthem,” Geale added. You may find it interesting at FinanceMagnates.com: FCAApplies New Tech to Handle 3,200% More Financial Promotions Reviewed in ThreeYearscETNs Lack FSCS Protection WarningFirms must also comply with the Consumer Duty. This sets outhow firms should act to deliver good outcomes for consumers. Despite this,cETNs will not be protected under the Financial Services Compensation Scheme. The FCA has warned that consumers should understand the risks beforeinvesting.The FCA stated that the ban on cryptoasset derivatives forretail investors will stay in place. It said it will continue to review thecrypto market and consider its approach to high-risk investments.This article was written by Tareq Sikder at www.financemagnates.com.