[World Corporate Law News] FCA Supports Tokenisation to Boost Efficiency and Innovation in Asset Management

Editorial Team – [2025] 179 taxmann.com 337 (Article)

World Corporate Law News provides a weekly snapshot of corporate law developments from around the globe. Here’s a glimpse of the key corporate law update this week.

1. Securities Law

1.1 FCA Supports Tokenisation to Boost Efficiency and Innovation in Asset Management

On October 14, 2025, the UK Financial Conduct Authority (FCA) announced plans to support tokenisation in asset management, aiming to drive innovation and growth in the sector.

The initiative includes new guidance to provide clarity to firms adopting distributed ledger technology for fund operations. The FCA views tokenisation as a key enabler for efficiency, competition, and broader investor access.

The UK, home to around 2,600 asset management firms overseeing £14 trillion in assets, is positioned to be a global leader in digital finance innovation. The FCA’s proposals outline guidance on operating tokenised fund registers, introducing a streamlined dealing model for both traditional and tokenised funds, and a roadmap to address barriers such as blockchain settlement.

Simon Walls, Executive Director of Markets at the FCA, said tokenisation has “the potential to drive fundamental changes in asset management” and reaffirmed the regulator’s commitment to providing firms with the clarity needed to innovate responsibly.

The proposals also form part of the FCA’s broader roadmap for digital assets and reflect its strategic focus on supporting new technologies in financial markets.

Source – Press Release

1.2 ASIC Updates Guidance on Communicating Audit Findings to Directors, Audit Committees and Senior Managers

On October 15, 2025, the Australian Securities and Investments Commission (ASIC) released updated guidance on how and when audit file review findings should be communicated to directors, audit committees and senior management.

The revised Regulatory Guide 260 (RG 260) provides practical guidance to company directors, responsible entities, superannuation trustees, disclosing entities and audit firms. The updates reflect ASIC’s expanded responsibilities under recent law reforms and clarify its authority to share audit review findings with the directors of superannuation trustees.

The guide outlines ASIC’s approach to sharing audit quality and financial reporting findings, promoting better collaboration between auditors and company boards. ASIC noted that this transparency aims to strengthen financial reporting standards and enhance confidence in the market.

The updated RG 260 replaces the 2022 version and aligns with ASIC’s proactive audit surveillance program, which focuses on improving audit quality and independence.

Source – Official News

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