Laura WilesThe FCA has welcomed a joint statement from the Investment Association, Personal Investment Management and Financial Advice Association, and Alternative Investment Management Association, supporting faster settlement of trades in funds.
The settlement period for transactions in listed stocks and bonds in the UK, Switzerland and EU is set to change to T+1 from 11 October 2027. Currently, deals in units of UK funds investment in stock or bonds settlement on T+3 or T+4.
The statement recommends firms to alter their fund settlement timings to T+2 on or before October 2027 in order to align fund settlements more closely with the T+1 development. The FCA considers that for UK authorised funds and recognised schemes investment mainly in markets set to operate on T+1 settlement, shifting trades in fund units to T+2 would be in the best interests of investors.