Regulations

Story: UK’s T+1 Shift Puts Buy-Side Firms Under FCA Pressure as 2027 Deadline Looms

By Sydney TheCMO

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Buy-Side Firms Falling Behind. Some firms are basically done. They've made the system changes, started testing, and are working…

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Third-Party Providers Are a Weak Link. Here's where it gets messier. A lot of firms can't finalize their own transition plans because…

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What the FCA Expects Before 2027. The FCA's strategy has two main pillars right now: communication and market monitoring.

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The clock's ticking. The UK has set October 11, 2027 as the hard date for moving to a T+1 securities settlement cycle, and a big chunk of the market isn't ready — not even close.

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The idea behind T+1 is pretty straightforward: securities transactions settle one day after the trade date instead of two. Faster. Cleaner.

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Some firms are basically done. They've made the system changes, started testing, and are working through the final details. Good for them.

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The UK Accelerated Settlement Taskforce, known as the AST, has laid out clear recommendations.

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The AST sent a Dear CCO letter spelling out what's expected. Firms received it. Many apparently read it and then didn't act on it fast enough.

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Buy-side firms are under specific scrutiny right now. The FCA is focused on their progress and has made clear it may take further action if readiness doesn't improve.

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Here's where it gets messier. A lot of firms can't finalize their own transition plans because their third-party providers haven't given them the information they need.

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The AST expected providers to have already shared their transition strategies with clients. Many haven't.

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See also: UK Banks Face Parliamentary Grilling Over Crypto Account Denials and Payment Limits

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The FCA has said it will follow up directly on this. The authority wants third-party providers to communicate operational changes and deadlines to their clients. It's not optional.

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Associations including AFME — the Association for Financial Markets in Europe — UK Finance, and the IA have put out joint industry guidance to help.

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Settlement performance data from Euroclear UK and International, known as EUI, is expected soon.

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