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ARTICLE · 22 OCTOBER 2025

FCA Consults On Fund Tokenisation And Direct Dealing

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On 14 October 2025, the Financial Conduct Authority (FCA) published a consultation paper (CP25/28) setting out proposals to advance fund tokenisation through new direct dealing arrangements...

United StatesFinance and Banking
Christopher Collins
Christopher Collins
Ryan Hansen
Ryan Hansen
Thomas Laurer
Thomas Laurer
Neil Robson
Neil Robson
Edward A. Tran
Edward A. Tran
Ciara McBrien
Ciara McBrien
Eleanor Bines
Eleanor Bines
James Wells
James Wells
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On 14 October 2025, the Financial Conduct Authority (FCA) published a consultation paper (CP25/28) setting out proposals to advance fund tokenisation through new direct dealing arrangements, and guidance on distributed ledger technology (DLT) implementation for UK authorised funds.

Background

In unit transactions, UK authorised funds currently operate through Authorised Fund Managers (AFMs) acting as principal, as opposed to allowing investors to deal directly with the fund or its depositary. This model, largely unique to the UK, creates an increased administrative burden and heightened regulatory risk that places UK fund managers at a competitive disadvantage to international peers.

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