On 20 November 2025, we co-signed a joint statement setting out concerns from the perspective of investors on the European Commission's proposed reforms regarding the EU securitisation framework. The joint statement sets out the shared views of the LMA and six other trade associations (AFME, AIMA, EFAMA, IACPM, ICMA and MFA).  

While supportive of the underlying intents behind the ongoing review, the associations are concerned that certain measures currently under discussion risk discouraging investment in securitisations, thereby undermining the Commission’s stated objective of growing the market. We collectively call on co-legislators to make improvements that will enable demand for securitisation in Europe to grow in the context of a robust and resilient regulatory framework.

On 14 October 2025, the FCA announced a new consultation paper outlining proposals to support the adoption of tokenisation in fund management and to ensure that regulations remain fit for the future. Tokenisation, which involves representing an asset or its ownership using distributed ledger technology (DLT), is becoming a key driver of innovation in financial services.

The FCA’s proposals set out new guidance for operating tokenised funds under the Blueprint model (an optional framework for direct dealing in both conventional and tokenised authorised funds), alongside a roadmap to address barriers to tokenisation and a discussion of future DLT-based models for large-scale portfolio management.

The FCA has invited feedback on the proposals by 21 November 2025, and on future tokenisation models by 12 December 2025, with a Policy Statement on final regulatory requirements expected in the first half of 2026.

On 17 September 2025, the LMA published its recommendations on further improving the EU securitisation framework following the European Commission's recent proposals (SR Proposals). Securitisation has an enormous potential to boost EU funding by attracting capital globally. But without a clear, proportionate regulatory framework, investor confidence - and thus Europe’s competitiveness - remains at risk.

In our position paper accompanied by detailed technical annex, we put forward key recommendations across three areas to help advocate for a more proportionate and ambitious regulatory framework - (i) building market confidence; (ii) removing investor barriers; and (iii) ensuring proportionate capital and liquidity requirements.