"We have received detailed feedback on the ‘Direct2Fund’ proposition providing the option for investors to directly transact with an authorised fund when buying and selling units.
This offers an alternative to the current dealing model where fund managers buy and sell units on behalf of the fund and its investors. We will develop the proposal further in the medium term."
Direct2Fund ('D2F') is the optional, alternative investor-fund dealing model for UK funds.
D2F enables investors to transact directly with their desired investment fund, bypassing the Authorised Fund Manager (AFM). The AFM has traditionally acted as a counterparty between investors and the funds they offer.
Removing the AFM from the chain:
Adoption of the D2F model is intended to be optional and can run alongside the existing model.
This proposal originally formed a part of a wider set of initiatives from the:
Regulatory & Legal Analysis, dated May 2023 - an executive summary of the regulatory changes that may be necessary to implement D2F
Update, dated March 2022 - provides updates on IA work and highlights the conclusions of an extensive legal and regulatory analysis, and intended next steps for the Direct2Fund initiative.