FCA writes to compliance managers on T+1 settlement expectations

The FCA has written to compliance officers at asset management and alternative firms to set out its expectations in anticipation for the transition to T+1 settlement on 11 October 2027.

By the end of 2025, firms should:

• Familiarise themselves with the recommendations in the AST Final Report and put in place a project plan to move to T+1 settlement by October 2027, including identifying the changes to be made by the firm and securing the necessary funding and budget to implement those changes;
• Carry out end-to-end review of trading, clearing and settlement arrangements;
• Contact settlement agents or any outsourced providers to discuss required changes; and
• If they regularly lend securities, make preparations to facilitate timely recalls.

By the end of 2026, firms will need to have implemented the identified changes, and in 2027 all firms will need to be testing (internally and with any third parties) their amended settlement processes to ensure they are ready to settle on a T+1 basis from 11 October 2027.