FCA welcomes industry backing for faster fund trade settlement
The Financial Conduct Authority (FCA) has welcomed a statement issued jointly by the Investment Association, Personal Investment Management & Financial Advice Association, and the Alternative Investment Management Association supporting faster trade settlement in funds. The statement explains that transactions in listed stocks and bonds across the UK, Switzerland, and the EU will change to a T+1 settlement cycle from 11 October 2027, while UK funds will move to a T+2 settlement cycle where feasible. The FCA has noted that faster settlement is expected to enhance market efficiency, improve liquidity, and reinforce the competitiveness of the UK financial market. It has also emphasised that fund managers should prepare for this transition and provide robust justification for any circumstance where settlement exceeds two business days.