On 14 October 2025, the Financial Conduct Authority (FCA) published a consultation paper (CP25/28) proposing new rules in relation to fund tokenisation and direct-to-fund (D2F) dealing.

Background

The FCA explained that it is proposing new requirements in order to support innovation in the UK asset management sector, while putting in place further protections for consumers. It further set out that it considers that tokenisation will be a key drive of future progress in the financial services sector and so it wants to provide clarity for firms and future proof the relevant rules.

Key proposals

The FCA highlighted that its key proposals include:

  • Guidance for operating a tokenised fund under the Blueprint model: The FCA explained that it wants to encourage firms to adopt the Blueprint model (a model under which firms can operate a tokenised unitholder register within existing legal and regulatory frameworks) and therefore it is consulting on guidance to clarify how managers can meet their existing regulatory obligations while using this model.
  • Introducing an optional new model for direct dealing in conventional and tokenised authorised funds: The FCA also set out that it intends to introduce flexibility to its rules to support broader use of direct dealing, including the D2F model, as an optional, alternative process.
  • A roadmap to advance fund tokenisation and address key barriers: The FCA has also asked for feedback on proposals related to how its rules can support next steps in and use-cases set out in a report by the Technology Working Group to the Asset Management Taskforce, and where its rules may require further development.
  • A discussion on future tokenisation models that use DLT to provide tokenised portfolio management at retail scale and how regulation may need to change to be fit for the future: The FCA also sets out a series of points for discussion in relation to certain tokenisation models put forward by industry.

Next steps

The FCA has set out that deadlines for feedback on the proposals for new rules and guidance will be Friday 21November 2025 and for the discussion of future tokenisation models by Friday 12 December 2025.