Division of Regulatory Roles: How the FCA, HM Treasury and Bank of England Oversee Tokenised Real‑World Assets

The regulation of tokenised real‑world assets in the UK is a cross‑institutional endeavour. The Financial Conduct Authority sets conduct and consumer protection standards (including financial promotions and custody expectations), HM Treasury leads on primary legislation and policy direction, and the Bank of England contributes through macroprudential oversight and considerations around systemic risk and settlement finality. This division reflects functional specialisation. The FCA focuses on how products are marketed, how platforms treat clients, and the operational safeguards needed for retail participation. HM Treasury considers statutory frameworks that clarify property rights, enable new transactional technologies and set the statutory perimeter for novel market models. The Bank of England assesses broader stability implications where tokenised markets might interact with payment, settlement and liquidity systems. Coordination mechanisms, including formal memoranda and joint policy consultations, exist to manage overlaps: for example, where custody models raise questions about money‑like instruments or where operational concentration could create systemic dependencies. This multi‑agency approach aims to balance innovation with investor protection and systemic resilience. For retail savers, the practical implication is that tokenised fractional ownership will be shaped by several watchdogs. Understanding which regulator oversees marketing, which body scrutinises systemic risk, and where legal title is defined helps investors evaluate platform disclosures and governance arrangements.