Starting May 27, 2024, ScotiaFunds will accelerate the settlement period for certain mutual funds from two business days to one business day following the transaction date (denoted by “T” - the date a trade takes place). The move to “T+1” is intended to improve overall efficiency of the securities markets, reduce settlement risk, and provide investors with quicker access to their invested capital. ScotiaFunds that currently settle on a T+1 basis (e.g., money market funds) remain unchanged.
What this means for you
Under the new T+1 settlement cycle, certain mutual funds will settle on the next business day, following the transaction date. For purchase transactions, this means your funds will be invested one day sooner and for redemptions, this means your funds will be posted to your account one day sooner, too.
Example:
If a purchase or redemption of an impacted mutual fund is accepted on Monday, May 27, it will settle on Tuesday, May 28.
Did you know?
This is not the first time the settlement cycle for mutual funds has been shortened. The settlement cycle was reduced from T+5 to T+3 in 1995, and from T+3 to T+2 in 2017.
If you have any questions, please read our Shortening the Trade Settlement Cycle article or contact your Scotiabank advisor.
