Investment Association (IA) – the trade body for the UK investment management industry –launched its T+1 Settlement: Navigating the UK, EU and Swiss Transition report, produced in collaboration with Alpha FMC, the Asset and Wealth Management Consultancy.

Aimed at asset managers, wealth managers, fund administrators and custodians, the document provides a roadmap for the transition of the UK and European Union securities markets from a trade-date-plus-two (T+2) to a trade-date-plus-one (T+1) settlement cycle, currently targeted for 11 October 2027.

This white paper comes as just two thirds (66%) of UK investment firms report being in active preparation mode for T+1.[1] The paper builds understanding of the challenges of the transition to support planning across the fragmented European market, and complements existing regulatory documentation, such as the UK Accelerated Settlement Taskforce (AST) guidelines, by focusing specifically on the downstream impacts to fund and cash operations.

The switch to T+1 will drastically compress the time available for trade confirmations, error resolutions, funding as well as collateral management and represents the most significant operational shift in European post-trade processing in decades.

Key recommendations from the IA’s T+1 Settlement: Navigating the UK, EU and Swiss Transition report to help firms prepare for the change are:

1. Act now and ensure that project plans, governance and budgets are in place.
2. Accelerate automation across the post trade lifecycle.
3. Review and strengthen FX operating models.
4. Prepare to move fund settlement cycles to T+2 by 11 October 2027.
5. Ensure the accuracy and completeness of Standard Settlement Instructions (SSIs).

Commenting on the roadmap, Galina Dimitrova, Director of Investment and Capital Markets at the Investment Association, said: “With less than two years left until go-live, investment managers are at an important juncture with their T+1 implementation. In addition to achieving the agreed regulatory milestones and ensuring compliance, firms have a critical opportunity to use this transition as a strategic initiative and a catalyst for post-trade modernisation.

“Our report ensures firms have a practical and actionable roadmap to go through all critical implications of T+1 on operating models and we urge firms to use it to kickstarts implementation, reduce operational risk, and strengthen the resilience and efficiency of the post-trade operating model for the long term.”

Andrew Douglas, Chair of the UK Accelerated Settlement Taskforce, said: “I welcome this timely paper from the Investment Association which offers practical and pragmatic advice on a successful transition to T+1. I encourage all IA members to follow this guidance.” 

Conor McKenna, Director at Alpha FMC, said: “T+1 should be viewed as a catalyst for modernising post-trade operating models rather than a pure compliance exercise. Firms that succeed will use this window to simplify processes and enhance scalability across investment operations, fund operations and securities financing.”

Source: IA

FCA welcomes the Accelerated Settlement Taskforce’s 2025 report on T+1 progress

The latest Accelerated Settlement Taskforce (AST) report updates on the significant progress made towards the move to T+1.

Read the AST report

Jamie Bell, head of capital markets at the FCA, said:

‘T+1 marks a major milestone in our drive to support growth and innovation. Faster settlement cycles will reduce risk, free up capital for faster reinvestment and align with other major markets.

‘We are delighted to see the great progress made last year highlighted in the AST’s report. By the end of this year, we expect market participants to update their systems and processes and be ready to test those changes. A smooth transition to T+1 will be key to maintaining market integrity.’

Source: FCA