The Financial Conduct Authority has published guidance on fund tokenisation explaining how asset managers can use distributed ledger technology within its existing rules, alongside new measures intended to make fund dealing more efficient. These include an optional Direct to Fund model that allows investors to deal directly with a fund, whether the fund is traditional or tokenised. The guidance and rules were developed with industry input. The policy statement describes tokenisation as the use of distributed ledger technology to represent an asset or ownership of an asset, and it also sets out how fund tokenisation could develop over time as part of the Financial Conduct Authority’s digital assets roadmap for asset management. The authority will also engage with industry on distributed ledger technology in UK wholesale markets.