TechFlow News, May 1: The UK’s Financial Conduct Authority (FCA) published Policy Statement PS26/7, permitting tokenized funds to operate within the existing fund regulatory framework and supporting fund managers in maintaining investor records via distributed ledger technology (DLT) systems. Under the new rules, on-chain transaction records may serve as the primary ledger for fund unit transactions; however, firms must develop appropriate resilience plans.
The FCA has also introduced an optional Direct-to-Fund (D2F) model, under which the fund or its custodian acts directly as the counterparty to investors’ transactions, streamlining subscription and redemption processes and enabling on-chain settlement. The FCA stated it will continue evaluating the use of stablecoins, digital cash, and smart contracts in fund settlement and operations.
