12 months to go: What UK Issuers need to do to prepare for T+1 settlement

From 11 October 2027, UK securities transactions will settle one business day after trade execution rather than two.  While certificated share transfers will continue to follow existing processes until wider digitisation reforms are implemented, the move to T+1 represents a significant step towards faster and more efficient settlement across UK capital markets.

The government’s implementation plan will align with similar moves across the EU and Switzerland. In supporting issuers during North America’s transition in 2024, Computershare has experienced in practice how this move can reduce market risk, improve efficiency and modernise post-trade processes.

For investors, this means there is less time to allocate trades, confirm instructions, arrange funding and complete settlement. For CoSec, governance, IRO, legal and finance teams it will demand a greater emphasis on automation, data quality and operational readiness. As settlements become compressed, manual processes, paper documentation and lengthy exceptional handling can become difficult to support.

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Modernising markets, digitisation and T+1 

The UK’s Digitisation Taskforce has recommended the removal of paper share certificates as part of the wider modernisation of UK capital markets. Simultaneously, the Accelerated Settlement Taskforce, the industry-led group set up to plan the transition to T+1, has identified automation and standardisation as critical enablers of T+1.  

Physical certificates introduce delays, manual verification and operational dependencies that are difficult to reconcile with next-day settlement. While T+1 does not remove certificated shareholdings, it is part of a direction towards greater digitisation, automation and electronic processing. For issuers, this means preparation should include broader readiness for a digital shareholder environment.

How can issuers prepare for T+1 settlement?  

T+1 isn’t just a concern for custodians and brokers. Company secretaries, governance teams and investor relations functions should already be asking several questions.  

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1. Do you have effective dividend and corporate action processes? 

T+1 places greater focus on accurate record keeping and efficient processing throughout the settlement chain. Issuers should review:  

• Dividend timetables  
• Record dates 
• Ex-dividend dates 
• Election deadlines  
• Corporate action communication processes 

Across Europe, industry groups are already reviewing corporate action standards, settlement conventions and event timetables to ensure processes remain effective in a T+1 environment. Issuers should engage with their advisers and registrars early to understand any implications for future dividend and corporate action calendars. 

2. Are your share buyback programmes effective? 

Share buybacks often involve close coordination between issuers, brokers and registrars. Faster settlements may impact trade reporting timelines, share cancellation processes, reconciliation procedures and treasury share management.   

Issuers conducting regular buybacks should engage with their advisers early to understand any operational changes required ahead of implementation.  

3. Have you engaged internal stakeholders? 

T+1 will sit across functions, including the company secretariat, investor relations, treasury, legal, finance and share plans teams. Cross-functional planning helps ensure no process is overlooked as settlement timelines shorten.  

4. Are your provider relationships aligned?  

T+1 places a much greater emphasis on efficient data flows and operational coordination across the shareholder ecosystem and timely funding arrangements are critical. Where registrars, share plan providers, trustees and other service providers operate separately, issuers should review how information is exchanged, understand all third-party dependencies and engage with them, and identify where any processes could be impacted by shorter settlement cycles, involving the right teams within their own organisations to make any changes required.

Why you should speak with your registrar today 

Registrars, such as Computershare, sit at the centre of many issuer processes affected by market modernisation. Our experience in implementing T+1 in Canada and the US, and dematerialisation in other markets around the world, alongside our full suite of issuer services capabilities, mean that we can work with you to get ahead of the potential impacts of T+1. 

These include:  

• Operational adjustment
• Register-related considerations
• Shareholder communication requirements
• Corporate action implications
• Digitisation readiness opportunities

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T+1 forms part of a broader modernisation agenda designed to make UK capital markets more efficient, resilient and internationally competitive. The UK government, regulators and industry taskforces have all emphasised the importance of automation, standardisation and digital-first processes.

For issuers, the benefits of early preparation extend to register management, shareholder engagement, corporate actions and future digital readiness. With 12 months to go, now is the time to move from awareness to action.