FCA sets fund tokenisation guidance and Direct to Fund rules
Asset managers using fund tokenisation must keep DLT designs within existing FCA fund rules
Change
The FCA published fund tokenisation guidance and introduced optional Direct to Fund dealing rules for traditional and tokenised funds.
Why it matters
The guidance gives authorised fund managers a defined route for using distributed ledger technology within the existing UK funds regime. Firms using tokenisation must map product design, investor dealing, register, administration and transfer-agent workflows to the FCA guidance, while firms using Direct to Fund must implement the optional model within the new dealing rules.
Implications
- — Asset managers developing tokenised funds must map distributed-ledger fund structures to existing FCA fund rules and the FCA's tokenisation guidance before launch.
- — Authorised fund managers using the Direct to Fund model must configure investor dealing so investors deal directly with the fund within the FCA's optional rules.
- — Fund administrators and transfer agents supporting tokenised or Direct to Fund structures must align register, dealing and settlement workflows with the FCA's stated operating framework.
- — Asset-management compliance teams must update product-governance and launch review checklists for tokenised fund designs and Direct to Fund dealing models.
Who is affected
- — Asset managers developing tokenised funds
- — Authorised fund managers
- — Fund administrators and transfer agents
- — Asset-management compliance teams
- — Product-governance teams approving UK authorised fund launches
What to watch
- — FCA publication date: April 30, 2026
- — Policy statement: PS26/7
- — New model: optional Direct to Fund dealing
- — Scope: traditional and tokenised funds
- — FCA digital-assets roadmap for asset management