Asset managers lag UK 'T+1' settlement preparations, survey finds

LONDON, Oct 13 (Reuters) — Asset managers are lagging in preparations for Britain's move to one-day securities settlement, with more than a quarter yet to begin work just a year before the deadline, according to a survey by the industry taskforce overseeing the transition. Britain, the European Union and Switzerland are due to move to one-day settlement cycle, known as T+1, on October 11, 2027, bringing them into line with the US, which adopted the shorter cycle in May 2024 T+1 settlement is intended to reduce market risk and free up capital by shortening the time between a trade and the exchange of cash and securities A survey by the UK Accelerated Settlement Taskforce found an indicative 28% of "buy-side" firms, including asset managers, pension funds and hedge funds, had not yet started preparing for the transition, compared with just 2% of respondents overall. The figures could change as the survey remains open for another two weeks "Inevitably it's the smaller asset managers" that are lagging, taskforce head Andrew Douglas told Reuters on Tuesday. Firms that fail to adapt could face financial penalties, reputational damage and increased regulatory scrutiny, he added At an even