On October 14, 2025, the U.K.’s Financial Conduct Authority (FCA) issued a consultation paper (CP25/28) proposing new rules for fund tokenization and direct-to-fund dealing (Consultation Paper). The FCA aims to provide firms with more clarity and confidence to adopt tokenization in fund management, as well as confirm its rules are suitable for the future. The proposed rules reflect the FCA’s desire to be ambitious and flexible in supporting innovations, taking a “technology positive” approach that ensures the U.K. is competitive on an international level. The FCA’s proposals address four key areas: accelerating tokenization of authorized funds, direct dealing in authorized funds, advancing fund tokenization and supporting future tokenization models. The proposed rules would apply to Undertakings for Collective Investment in Transferable Securities management companies, U.K. alternative investment fund managers of authorized funds and depositaries of authorized funds. This article summarizes the key takeaways from the Consultation Paper. For coverage of other FCA initiatives, see “U.K. FCA Emerging Managers Survey Urges Broad Changes to Curb Retail Market Abuses” (Jul. 24, 2025); and “U.K. Regulators Propose Changes to AIFM Rules to Ease Compliance Burden on Fund Managers” (May 29, 2025).