The Digitisation Taskforce has published its final report, recommending a three-step plan to modernise the UK shareholding framework by eliminating paper share certificates and transitioning to a fully digitised and intermediated system. The UK government published its response the same day, confirming it has accepted all recommendations as part of its broader Wholesale Financial Markets Digital Strategy. The first phase, to be completed by the end of 2027, will legislate to end the issuance of paper shares and require companies to replace paper share registers with digitised versions, with the precise date to be set by a newly established technical group. The second phase will focus on legislative and operational reforms to enhance shareholder rights within the intermediated system. The UK government also intends to amend legislation to allow shares in UK companies to be held on overseas branch registers in uncertificated form by Q2 2027, supporting UK firms listed in Hong Kong. The final phase will see all shares transitioned into the intermediated system, subject to government-set criteria, including protections for vulnerable and older investors. The technical group, led by an industry chair, will oversee implementation and develop a detailed roadmap, including terms of reference and a timeline for reporting back to government.
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