LONDON, April 30, 2026 — The Financial Conduct Authority said in a statement it published guidance setting out how asset managers can use distributed ledger technology within existing regulatory rules in connection with tokenised funds.
The guidance outlines how firms can apply distributed ledger technology to represent fund units and ownership structures while remaining within the current regulatory perimeter.
Operational structure
The authority said the guidance includes measures aimed at improving fund dealing processes, including an optional Direct-to-Fund model that allows investors to transact directly with a fund, whether traditional or tokenised.
It described tokenisation as the use of distributed ledger technology to represent assets or ownership, adding that the approach could reduce operational costs and broaden access to investment products.
Industry engagement
The regulator said it worked with industry participants in developing the guidance, which forms part of its policy statement on fund tokenisation.
“Tokenisation has the potential to play an important role in asset management,” Simon Walls, executive director of markets at the authority, said in the statement. “We have focused on delivering a clear, practical framework that provides confidence in how fund tokenisation can operate within our rules.”
Market context
The guidance forms part of the regulator’s broader digital assets roadmap for asset management.
The UK has approximately 2,600 asset management firms overseeing about £16.5 trillion in assets for domestic and international clients, according to the authority.
