A New Chapter in Asset Management: Understanding the UK Fund Tokenisation Blueprint

Archax, as a prominent entity involved in fund tokenisation, is pleased to support the public release of the "UK Fund Tokenisation: A Blueprint for Implementation". This significant document, produced by The Investment Association, lays out a detailed framework for implementing fund tokenisation in the UK, signifying a substantial step forward in the evolution of asset management.

Archax warmly welcomes this report and is excited about its implications for the industry. The Financial Conduct Authority (FCA) has also issued a statement acknowledging the report, which is a strong endorsement of the potential of tokenisation to revolutionise the investment landscape.

To aid the implementation of the blueprint, the FCA has provided several resources:

1. A Public Statement: Embracing the report and highlighting its importance.

2. A Letter to the Working Group: This letter details some of the rules considered in developing the baseline approach for fund tokenisation. It ensures that industry members clearly understand the FCA's interpretation of relevant regulatory requirements. The FCA acknowledges that each model may differ and advises firms to conduct due diligence and possibly seek independent advice.

3. Fund Tokenisation Resources Webpage: A new platform created by the FCA dedicated to providing resources and assistance for firms considering fund tokenisation. This hub will likely serve as a central point for updates, guidelines, and support materials.

Furthermore, the FCA encourages firms to engage proactively. They invite firms with queries about fund tokenisation to reach out, fostering a collaborative approach to understanding and implementing this innovative approach efficiently. They also recommend that firms considering applying for authorisation of a tokenised fund seek a pre-application meeting to present and explain their proposals, which is expected to streamline the authorisation process.

HMT has also 'warmly welcomed' the report, reflecting the government's support for the initiative and its potential benefits for the UK's financial services industry.

Archax, in its commitment to innovation and excellence in digital finance, is enthusiastic about these developments. The company recognises the potential for fund tokenisation to enhance operational efficiencies, increase transparency, and bolster the UK's position as a leading financial hub. Archax is committed to being at the forefront of this transformation, leveraging its expertise to contribute to and benefit from the evolving landscape of asset management.