The Financial Conduct Authority proposes enabling public fund unit registers to operate on blockchain while retaining existing investor protection and regulatory standards.
The UK Financial Conduct Authority (FCA) issued a consultation outlining support for tokenization within the asset management and fund sectors. The blueprint allows public fund unit registers to transition to distributed ledger technology (DLT) without modifying core regulatory frameworks. Key areas including custody, valuation, disclosure, and investor protection remain intact, ensuring regulatory consistency while facilitating blockchain-based fund registration. The proposal aims to advance innovation in financial infrastructure while maintaining stability and consumer safeguards.