Fund Tokenisation In The UK: A Simple Guide For Asset Managers

Fund tokenisation represents an attainable and strategically advantageous evolution for the UK's asset management sector, promising material efficiency gains for asset managers, enhanced transparency and risk-management benefits for regulators, and a competitive edge for the wider UK financial services ecosystem.

This article is a guide to (i) the potential benefits and use cases of fund tokenisation for asset managers; (ii) the possible benefits and use cases of fund tokenisation for regulators; and (iii) the Investment Association's (IA) blueprint for implementation of fund tokenisation. By examining these three dimensions in turn, we aim to provide a clear, commercially grounded understanding of how tokenisation can enhance operational efficiency, broaden market access, and strengthen regulatory oversight across the fund ecosystem. A glossary is available to download for easy future reference.