The FCA on Thursday published final guidance on fund tokenisation and introduced an optional Direct to Fund (D2F) dealing model for UK authorised funds.
The guidance, set out in policy statement PS26/7, clarifies how firms can use distributed ledger technology (DLT) within the regulator’s existing rules. The D2F model lets investors deal directly with the fund rather than routing through the manager’s dealing account, and applies to both traditional and tokenised funds.
UK managers now have a clearer route to running tokenised fund infrastructure without waiting for a separate rulebook, while also gaining a simpler dealing option for conventional authorised funds.
Simon Walls, executive director of markets at the FCA, said: “We have focused on delivering what the market has asked for: a clear, practical framework that provides confidence in how fund tokenisation can operate within our rules, both now and into the future.”
John Allan, director of innovation and operations at the Investment Association, said the guidance provides “confidence around public chain models where the right controls are in place, and the use of digital cash tools for operational needs.”
The policy statement finalises proposals the FCA set out in consultation paper CP25/28 in October 2025. It also includes a roadmap for how fund tokenisation could develop further as part of the regulator’s wider digital assets strategy.
The UK is home to around 2,600 asset management firms overseeing £16.5 trillion in assets.
