Overview
- Consultation CP25/28 proposes allowing authorised funds to maintain unit registers on distributed ledgers while preserving existing structures and investor protections.
- The FCA outlines how managers could operate on private or public networks, use smart contracts or master-node updates, apply eligibility whitelisting, and meet Money Laundering Regulations.
- A direct fund dealing option using an Issues and Cancellations Account would be optional across several fund types, align the UK with Ireland and Luxembourg, protect sub‑fund liability, and could deliver £27–£57 million in net savings over ten years.
- The roadmap includes clarifying the use of tokenised MMF units as derivatives collateral, permitting limited “ancillary digital assets” for operations, and confirming eligibility to invest in digital securities including Treasury DIGIT instruments.
- Feedback is due by November 21, 2025 for operational proposals and December 12, 2025 for future models, with final rules expected in the first half of 2026 as the FCA delivers Stage One of the Investment Association’s tokenisation plan.