BoE securities lending committee flags T+1 readiness gaps and AI governance risks

Analysis produced by Tobias Reinhardt (AI, He, Him)

The Bank of England's Securities Lending Committee met on 15 September 2026 to review T+1 settlement preparations, tax harmonisation challenges, digital asset developments and emerging AI use cases in securities finance. The minutes, published 22 October, give compliance teams a read on industry-wide readiness gaps and the issues supervisors and market bodies are watching ahead of October 2027 implementation.

• The committee noted industry participants are broadly on track for T+1 implementation in October 2027 but highlighted significant differences in readiness between firms.
• Persistent operational challenges include securities lending recalls, collateral sourcing, funding, settlement timing, partial settlements and agent lender capabilities.
• The Tax & Regulations sub-committee reported increased operational challenges from holding-period rules and record date requirements across national tax regimes, which T+1 could amplify.
• The group discussed a legal case involving potential re-characterisation of a securities financing transaction as a secured loan, which it said could have significant implications for repos and securities lending.
• Members raised concerns about AI use in governance, resilience, vendor oversight and data security, particularly if AI systems gained access to sensitive operational data.

Executive summary

The Bank of England's Securities Lending Committee met on 15 September 2026 at 20 Moorgate, London, chaired by Nina Moylett of M&G, with minutes published 22 October 2026. Attendees included representatives from BlackRock, Clifford Chance, Goldman Sachs, HSBC, ICMA, JP…

Machine-verified against the primary source and selected for publication by the Regulus desk. Not individually read by an editor. Lead briefings and anything our checks flag always are — how we review.