FCA Publishes Fund-Tokenisation Guidance and Backs Direct-to-Fund Dealing Option

The FCA said on April 30 that it has published guidance designed to make fund tokenisation easier to use inside the UK’s existing regulatory framework. The regulator said asset managers can use distributed ledger technology within current rules and paired the guidance with new rules that also allow an optional Direct to Fund, or D2F, dealing model.

In practical terms, the FCA is trying to remove some of the legal and operational uncertainty that has slowed tokenised-fund projects. The new guidance addresses how tokenised structures can operate now, while the D2F option gives firms a route for investors to deal directly with a fund, whether that fund is traditional or tokenised. The regulator framed the move as part of its broader digital-assets roadmap for asset management.

This is a wholesale-market and platform-infrastructure story more than a retail-app launch, but it still matters to traders. If tokenised fund structures become easier to issue and service, they could widen the set of investment products distributed through digital channels and lower some back-office friction around settlement, transfers, and ownership records.

Why it matters

The FCA is signaling that UK firms do not need to wait for a brand-new rulebook before testing tokenised fund models. Clearer guidance can speed up product design and make firms more comfortable investing in tokenised-market infrastructure.

What to watch next

Watch whether large UK asset managers actually launch new tokenised vehicles under the updated framework. The more important signal will be real issuance and distribution activity, not just policy support.