Regulations

Story: FCA Clears Path for UK Fund Tokenisation as £16.5 Trillion Sector Eyes DLT Shift

By Dan Saada

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What Changes for Asset Managers. Tokenisation means representing asset ownership on DLT.

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Industry Reaction and Next Steps. The Investment Association seems pleased. Allan's comments suggest the sector sees this as…

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Britain's financial watchdog just made it easier for asset managers to tokenise funds. The Financial Conduct Authority rolled out new guidance that lets firms use distributed…

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The FCA's framework includes something called the Direct to Fund model. It's optional, but it lets investors deal straight with funds—tokenised or traditional—without the usual…

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Tokenisation means representing asset ownership on DLT. Sounds technical, but the goal is simple: cut costs, speed up fund dealing, and open investment access to more people.

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The guidance doesn't force anyone to tokenise. But it removes the regulatory fog that's kept firms cautious.

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Firms can now map out operational models that align with long-term innovation goals. The FCA's emphasis on transparency and control, especially around public chain models, shows…

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The Investment Association seems pleased. Allan's comments suggest the sector sees this as validation of the UK's willingness to lead on fund market infrastructure.

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The regulator sent a letter to the Prime Minister underlining its commitment to accelerating tokenisation adoption. That's a signal this isn't a one-off policy tweak.

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See also: UK Motor Finance Lenders Face Legal Chaos as FCA Compensation Plan Hits Tribunal

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The guidance also touches on digital cash tools, which could streamline settlement and reduce friction in fund transactions.

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Costs matter here. Fund dealing involves layers of intermediaries, each taking a cut and adding time. Tokenisation could collapse some of those layers.

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The UK's trying to maintain its spot as a leading asset management hub. With Brexit reshuffling the competitive landscape, London's been keen to show it can move fast on…

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The regulator's digital roadmap includes potential future developments beyond what's in the current guidance.

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Related: Money Launderer Richard Faithfull Gets 499 More Days in Prison for Dodging £529,961 Debt

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