Important changes are coming to the settlement cycle of buying and selling securities on May 27, 2024

Canada and the US will be shortening the settlement cycle for equities, fixed income and most mutual funds from T+2 (two business days after trade date) to T+1 (one business day after trade date). This change will be effective in Canada on Monday, May 27, 2024 (and on Tuesday, May 28, 2024 in the US due to the Memorial Day holiday).  ATB Investment Management’s funds - the Compass Portfolios and ATBIS Pools - will be included in the transition.

The move to T+1 reflects improvements in technology within the industry globally, allowing trades to settle more quickly. This is not the first time the industry has gone through this type of transition—in 2017, Canada and the US moved from a T+3 to T+2 settlement cycle. India has already made the move to T+1 and Europe is currently deliberating on the transition.

What are the main benefits to T+1?

The move to T+1 will benefit both industry participants and investors by:

• reducing transactional risks;
• providing a potential for cost savings; and 
• allowing investors to access their funds sooner or receive shares faster.

Mutual fund companies in Canada have been given the option to move to the new T+1 settlement cycle and ATB Investment Management (ATBIM) will be one of them.

What is ATBIM doing for the change?

ATBIM has a dedicated project management team in place working towards a smooth and efficient transition for our funds on May 27 ensuring minimal impact to Compass Portfolio and ATBIS Pool investors.

What do investors need to do?

For investors in mutual funds, such as the Compass Portfolios or the ATBIS Pools, that settle on a next-day basis, this transition will be seamless. 

It is recommended that you contact your advisor if you wish to use the proceeds from redeeming a fund that takes two days to settle to buy a fund or other security that settles in one day. 

Where do I find out more information?

See our FAQ guide here. 

To find out which other investment funds have moved over to T+1 from T+2, please visit Fundserv’s Fund Profile page.

For further questions about the T+1 transition and how this affects your portfolio, please contact your financial advisor.