The UK Financial Conduct Authority is concerned that financial services firms are not prepared for the transition to T+1, scheduled for October 2027.
In a recent post, the FCA states that it is seeing “challenges” and “complacency” among firms that the change will impact.
“Remember, the later you start making changes, the more it’s going to cost you in the future,” states the FCA.
The FCA has warned that some asset managers are unprepared for moving to T+1 in October 2027.
T+1 means that trades must be settled in just one business day after execution. As technology improves, this process should become easier, but inertia and legacy operations can be hurdles. The FCA notes that the change will help the UK align with shifting global norms while improving market efficiency.
The FCA states that it has engaged with firms to understand better how the transition is progressing.
Stephen Ashworth, Chief Commercial Officer at Tokenovate, notes that we will soon enter a new paradigm of T+0, emblematic of the migration to digital assets.
“The Financial Conduct Authority’s warning that some asset managers remain under-prepared for the switch to T+1 settlement is a serious wake-up call. Beyond meeting the 2027 deadline, firms must already begin building for the eventual move towards T+0, where speed, precision and operational resilience are critical. By embracing next-generation solutions such as tokenisation, firms can streamline settlement flows, optimise liquidity management and mitigate counterparty and funding risk in an increasingly compressed timeline.”
