FCA Says Majority of Firms Are Ready for T+1

The UK’s financial regulator says market participants are ready for the transition to faster settlement times that are pencilled in to arrive in October 2027.

Jamie Bell, the FCA’s interim head of capital markets, took part in an event where 87% of participants polled indicated they are ready for the transition and had identified the changes they need to make to move to T+1 settlement from the current T+2 system.

The poll comes six months after the regulator published its Implementation plan. Bell told the audience that engagement with the market had been positive and he is satisfied with preparations to date. He also noted, however, that the FCA is unable to meet with every single firm involved in the transition, despite its best efforts.

He also stressed the importance of automation for achieving effective settlement processes and he cautioned that despite the FCA’s supportive role during the transition, it will not hesitate to act if firms fail to prepare for the 11 October 2027 deadline.