TechFlow news, October 15 — According to Caixin, on October 14 the UK Financial Conduct Authority (FCA) launched a consultation on proposals supporting the adoption of "tokenisation" in the asset management and fund industry. The proposal provides a compliant pathway for registering mutual fund shares on distributed ledger technology (DLT), aiming to reduce costs and improve efficiency in asset management through blockchain technology.
According to the consultation paper, the FCA's proposed "blueprint model" allows fund managers to migrate share registration systems onto blockchains without altering the core regulatory framework. Requirements regarding fund custody, valuation, information disclosure, and investor protection remain unchanged, but share registration can be completed via distributed ledgers.
