Firms Risk Survival If They Fail to Meet T+1 Settlement Deadline

The European Union, UK, and Switzerland are accelerating their securities settlement cycles to T+1 by October 2027, with regulators warning that non-compliance could prove fatal for lagging firms. Andrew Douglas, chair of the UK Accelerated Settlement Taskforce, emphasized the existential stakes during a panel at Amsterdam's OPTIC conference.

"This is classic self-harm," Douglas said of firms delaying transition. "If you don't adhere, there's a fairly good chance you won't survive." The warning carries particular weight for smaller asset managers operating outside trade associations - while industry groups represent 600 UK firms, the FCA regulates 2,500.

Both EU and UK legislation will enforce the October 2027 deadline, creating legal jeopardy alongside competitive pressure. Douglas framed the timeline as an industry-consensus roadmap: "Your peers have determined this is the most likely route to success."