FCA Warns Firms to Prepare for T+1 Settlement Deadline

The Financial Conduct Authority (FCA) has signaled it will take action if market participants fail to meet the October 2027 deadline for transitioning to T+1 settlement in the UK. Jamie Bell, the FCA’s interim head of capital markets, emphasized the regulator’s supportive role but stressed compliance during a fireside chat at an Accelerated Settlement Taskforce (AST) event hosted by EY.

With 87% of polled firms already identifying necessary changes, the FCA noted satisfactory progress but warned against complacency. Automation emerged as a critical factor for efficient settlement, with firms urged to prioritize technological upgrades. The regulator clarified it cannot engage individually with all authorized entities, instead relying on broader market communication efforts.