FCA Seeks Feedback on Tokenization Proposal for Asset Management

According to PANews, the UK's Financial Conduct Authority (FCA) has initiated a consultation on October 14 regarding a proposal to support the asset management and fund industry in embracing tokenization. This initiative aims to provide a compliant pathway for registering public fund shares on distributed ledger technology (DLT), leveraging blockchain to enhance efficiency and reduce costs in the asset management sector. The consultation document outlines a 'blueprint model' that allows fund managers to migrate the fund share registration system to blockchain without altering the core regulatory framework. Custody, valuation, information disclosure, and investor protection requirements remain unchanged, while share registration can be completed via distributed ledger technology.