PIMFA
DIGITISATION OF THE UK SHAREHOLDING FRAMEWORK
In July 2022, the Government established a Digitisaton Taskforce with the aim to drive forward the digitalisation of the UK shareholding framework by eliminating the use of paper share certificates and to improve the UK’s intermediated system of share ownership. This focus of the taskforce is based on the Secondary Capital Raising Review (SCRR) final report recommendations in July 2022.
The SCRR defined digitisation as encompassing the eradication of paper-based processes in the securities settlement infrastructure for capital markets and improvements to the UK’s current shareholding framework.
- The Digitisation Taskforce produced its final report in July 2025
The report contains a three step plan for the digitisation process:
- Removal of paper shares and establishment of digitised registers – to be completed by 31/12/2027.
- Preparing for a fully intermediated system – to be delivered within this Parliament (last date for a General Election 15/08/2029).
- All shares transition into the intermediated securities chain – to be completed by the end of this Parliament
The Government has responded to the Final Report – their supportive response appears here.
A Digitisation Taskforce technical group will be convened in autumn 2025 to steer the implementation of the three-step plan. PIMFA is supporting members with the proposed and ongoing recommendations of the Taskforce’s final report. We will be following closely the activities of the Digitisation Taskforce technical group.
- DIGITISATION WORKING GROUP
A PIMFA Digitisation Working Group has been established to bring firms together to consider the recommendations in the Digitisation Taskforce Final Report and to monitor the activities of the Digitisation Taskforce technical group as they work on the implementation of the Taskforce’s recommendations.
If you are interested in joining this member only group please contact Kevin Sloane.
latest news
Dematerialisation (DEMAT) Digitisation Update
The Government’s Dematerialisation Market Action Taskforce (DEMAT), chaired by Mark Austin CBE, has been established to take forward the Digitisation Taskforce’s recommendations and modernise the UK’s shareholding framework.
Current Work and Phases
The programme is structured around three key phases:
- Phase 1 – Digital share registers by 2027:
Paper-based registers will be replaced with digitised share registers by the end of 2027. - Phase 2 – Improving the intermediated system:
Reforms will strengthen how beneficial owners can exercise their rights through intermediaries, enhancing engagement and transparency. - Phase 3 – Full transition to the intermediated system:
Once improvements are implemented, all shares will move fully into the intermediated system, supported by criteria reflecting different levels of market readiness.
Timeline
The Taskforce is looking to deliver its first implementation report in summer 2026, with further government announcements to follow. A second report is anticipated in 2027, setting out the final steps required to complete the transition.
If you or your firm would like to stay up to date on this work, please email Maria Fritzsche
Maria Fritzsche
Senior Policy Adviser - Operational Policy, Regulation and Innovation Lead
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