EU and U.K. asset managers must adapt for T+1 settlement now to start testing in 2027
By 
Ruth Prickett2026-04-03T18:20:00
On Oct. 11, 2027, the EU, U.K., and Switzerland will move to T+1 securities settlement. The date may seem distant, but the challenges are considerable – and simply following the example of U.S. firms that went through the same transition in 2024 will not fully resolve them. Compliance teams in asset managers must prepare now, or their firms will struggle, experts warn.
Since 2014, the U.K. and EU settlement period (the gap between trading shares or bonds and receiving the securities/proceeds) has been T+2 – two days after the trade takes place. The gap allows for processes such as checking the source of funds and the ability of the seller to complete the trade. However, it also exposes both sides of the trade to risks that T+1 should minimize.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
ArticleBank of England tightens liquidity requirements for U.K. banks
U.K. banks must reassess how quickly they could monetize their assets in the event of a crisis under new rules proposed by the Bank of England’s regulatory body, the Prudential Regulation Authority. The proposals are the first changes to the liquidity rules since these were updated in the aftermath of ...
-
ArticleU.K. and EU commit to extending Russian sanctions and strengthening enforcement
As the U.S. relaxes some Russian sanctions to ease oil flows, the U.K. government has published a new Strategic Approach to Sanctions Enforcement, indicating that it does not intend to relax its focus on prosecuting sanctions breaches.
-
ArticleEU and U.K. demand evidence to back sustainability claims
Businesses must come clean about green. The U.K. and the EU are enhancing and clarifying rules around corporate sustainability claims, with supply chains in their sights.
More from Regulatory Policy
-
ArticleHow to prepare for U.K. sustainability reporting rules
The U.K.’s plans to revise how companies report more meaningfully on the impact their operations have on the environment will mean organizations will have to dig for better data to satisfy regulators—even if they decide that compliance with the proposed rules is not appropriate for them under the option of ...
-
ArticleEU data regulators support loosening cybersecurity compliance requirements
The European Union’s key data privacy regulators have said that they support streamlining compliance and reporting requirements under plans to beef up cybersecurity across the 27-nation bloc.
-
ArticleEU prioritizes AI regulation and frameworks, despite Omnibus delays
The EU announced delays to some of its landmark AI regulations in its Digital Omnibus in December, but the AI Act has not gone away. Compliance leaders must beware complacency and ensure they follow the debate and note new deadlines as they emerge.