The Financial Conduct Authority in the United Kingdom has issued final rules that allow asset managers to use distributed ledger technology for authorized funds, marking the first time a major European regulator has integrated tokenized fund operations into its existing regulatory framework instead of confining them to a sandbox environment.

The rules, published in Policy Statement PS26/7, came into effect on April 30, 2026. They confirm that fund managers can tokenize units in authorized funds under the FCA’s current rules without the need for a separate regulatory system.
The FCA received 64 responses to the previous consultation paper CP25/28, which was first proposed on October 14, 2025. Respondents overwhelmingly supported the regulator’s approach to accelerate the tokenization process of funds.