The rule.
“You should not invest more than 10% of your net assets in high-risk investments.”
Verbatim extract, read on 4 November 2026 from the source below. Everything else on this page is NorthPoint’s plain-English reading.
What it requires.
- The client confirms two things: in the past twelve months they invested less than 10% of their net assets in high-risk investments, and in the next twelve months they intend to stay under 10%. Net assets exclude the main home, pensions and rights under qualifying insurance contracts; cryptoassets are listed as high-risk investments.
- COBS 4.12A.25G: the 10% is the aggregate across all types of restricted mass market investment.
Who it applies to.
Retail clients categorised as restricted investors under COBS 4.12A.22R, and the firm running the categorisation.
Common violations in marketing copy.
Statement with 'Yes' already selected on both questions
The client is meant to answer, not to accept a default.
'I'm OK with risk' checkbox in place of the Annex text
The statement is prescribed in the Annex.
Non-compliant vs compliant.
“☑ I understand crypto is risky (pre-ticked).”
“RESTRICTED INVESTOR STATEMENT — the Annex 5R text in full, both questions unanswered by default, the percentage fields blank.”
Related rules.
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COBS 4.12A.21R · United Kingdom
-
COBS 4.12A.28R · COBS 10.1.2R · United Kingdom
-
COBS 4 Annex 1R, section 8 · United Kingdom
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UK cryptoasset financial promotions (FSMA s21, the FPO and FCA COBS).
Source.
| Instrument | FCA Handbook, COBS (as amended by the Cryptoasset Financial Promotions Instrument 2023, FCA 2023/27) |
|---|---|
| Provision | COBS 4 Annex 5R · COBS 4.12A.25G |
| Primary source | https://www.handbook.fca.org.uk/instrument/2023/FCA_2023_27.pdf |
| Official text | https://www.handbook.fca.org.uk/handbook/COBS/4/ |
| Read from | FCA 2023/27 as made (in force 8 October 2023), read from the FCA Handbook instrument PDF; the consolidated Handbook page is a script-rendered app the build session could not read |
| Checked |
This page is general, sourced information for marketing teams, not legal advice. The examples are written by NorthPoint to illustrate the rule; for a binding view on your own promotion, retain qualified counsel in the jurisdiction concerned.