FCA publishes new rules on fund tokenisation

The FCA has published new rules aimed at supporting asset managers innovate with fund tokenisation. The new policy sets out how AFMs can use distributed ledger technology (DLT) to issue, transfer and maintain records of units in authorised funds within the FCA’s rules.

There are also new optional rules for a Direct to Fund model, which would enable investors to deal directly with the fund (whether traditional or tokenised) rather than exclusively via intermediaries or platforms.

The FCA has also added Handbook guidance on maintaining unitholder registers on DLT, clarifying its expectations around legal ownership, accuracy, accessibility and auditability where registers are tokenised.