On 27 March 2024, the Financial Conduct Authority (FCA) updated its webpage on fund tokenisation to add information on the Technology Working Group’s phase 2 report, published on 26 March 2024.

The FCA and HM Treasury are observers on the industry-led Group, which is considering the implementation of fund tokenisation in the UK. The FCA notes that it inputted on the development of the Group’s November 2023 interim report, and also worked with firms on a high-level assessment of the FCA rules for the Group’s baseline approach to fund tokenisation.

The updated webpage explains that the report, entitled ‘Further Fund Tokenisation: Achieving Investment Fund 3.0 Through Collaboration’, aims to help develop further momentum in the UK market by:

  • Identifying use cases for fund tokenisation.
  • Examining the likely next stages of development.
  • Testing the use cases identified with industry representatives to establish how they can improve market functioning or consumer outcomes.  

It also confirms that the FCA will continue to work openly and constructively with the Technology Working group.