In its February 2023 discussion paper (DP23/2) relating to the UK regulatory regime for asset management, the UK’s Financial Conduct Authority (“FCA”) briefly touched on fund tokenisation as an area of technological drive and change in the fund management industry. Please refer here to our update on that discussion paper.
The FCA made clear that it is actively engaging with firms and trade associations in relation to proposals for fund tokenisation, to develop its thinking in this area and consider possible necessary rule changes or guidance.
With this in mind and given the growing trend among traditional funds and asset managers to launch tokenisation programmes for alternative assets, we have set out below some of the key considerations from a UK regulatory perspective.